What is the “Option” period in Texas?

Every state has slightly different protocols when it comes to real estate contracts and the processes in which a transaction follows.  Every state, as far as I know, allows a buyer an opportunity to have a home inspector conduct an inspection of the home during the initial phase of the transaction.  In Texas, this is called the “option period,”  How long the option period lasts is a negotiable point of the contract, but it’s pretty typical to see between 7-10 days.  This can vary for larger properties on well, septic, have multiple out buildings or guests houses, etc.  In Texas, a buyer who enters a contract and has an option period can walk away from the contract during the option period for any reason whatsoever.  A buyer is given the “unrestricted right to terminate the contract” during option, meaning a home inspection could result in literally zero issues, and a buyer can still terminate the deal, if they so choose to.

However, this is fairly rare, as most buyers are going to present a list of repairs to a seller, in the form of an amendment (a document that becomes part of the contract, if agreed to).  During option period, a buyer and seller may negotiate repairs, credits in lieu of repairs, etc.  A buyer may also use the option period to take measurements for furniture, meet with contracts to get bids on future remodel projects and have a specific contractor out to further assess a possible concern that the home inspector may have noted in his report.

Sometimes sellers can get upset or impatient if a buyer requests a second visit during option period with another contractor (maybe the home inspector suggested an HVAC company to come out to further assess the HVAC system), but sellers should do their best to accommodate a buyer’s reasonable requests during option period.  Notice the word “reasonable” here.  If a buyer wants to come over every day during option period or come over late at night, after hours with a designer, this would not be considered very reasonable.  I have had sellers refuse a buyer to come over more than the one time during option period and often times, this doesn’t end well for the seller.  As long as a buyer has a valid reason to request a second or third visit, a seller should do what they can do work with a buyer’s request during option period, without being taken advantage of.

I often tell my sellers to hold off on packing too much during option period due to a buyer’s ability to cancel a contract at anytime, but you can certainly start to lightly pack or prepare to pack during option period, as way more often than not, contracts progress past option period after some back and forth or some give and take from both parties.

In conclusion, having an option period or “inspection” period is an essential step in a real estate transaction, as often times the purchase of a home is the largest single financial decision a person will ever make in their life so it’s fair for a buyer to have this time to ensure they feel right about the home they are attempting to buy.

Hill Country Flat Fee Realty in Boerne, Texas is a full services brokerage that saves sellers thousands of dollars while selling their homes.  We serve the greater San Antonio, Texas market.