Heard your agent mention the “option period” and wonder what it means for your TCU-area home search? You are not alone. This short window is one of the most important parts of a Texas purchase contract, especially in neighborhoods like Frisco Heights near TCU where homes often have unique age and condition factors. In this guide, you’ll learn what the option period is, how it protects you, how the timeline and fees work, and which inspections to prioritize locally so you can move with confidence. Let’s dive in.
What the option period means
The option period is a negotiated number of days after both parties sign the contract when you can terminate for any reason. Your right to terminate is unconditional during this time, as long as you send written notice before the deadline stated in your contract. This right is purchased with a small, negotiated, nonrefundable option fee.
The option period is a contractual right, not a state statute. That means it exists only because your contract includes it and defines the terms.
- The option fee is generally nonrefundable. If you proceed to closing, it can be credited to your purchase price or closing costs if both parties agree.
- The option fee and the option period are separate from earnest money and also separate from any financing or appraisal provisions.
Typical ranges vary by market conditions:
- Length: commonly 3 to 10 days. In some markets, 5 days is a frequent starting point. In competitive conditions, buyers often shorten it.
- Fee: often $100 to $500, though buyers may offer more to secure time when competition is high.
The exact numbers you agree to should reflect your negotiation strategy and the current Fort Worth market.
When it starts and ends
The option period begins on the contract’s effective date. It continues for the number of days written in the option paragraph of your contract.
In many TREC forms, the option period ends at 5:00 PM on the final day listed. Always confirm the exact deadline and delivery rules in your specific contract. Missing the cutoff means you lose the right to terminate under the option.
Option fee and earnest money
These two payments serve different purposes:
- Option fee: You pay the seller, or deliver as directed in your contract, often to the title company or the seller’s agent. It buys your termination right during the option period and is typically nonrefundable.
- Earnest money: A separate deposit held by the title company or escrow agent. If you terminate within the option period following contract instructions, the earnest money is typically returned to you. The seller keeps the option fee.
Keep receipts and confirm delivery of both. Clear documentation helps avoid confusion later.
What to do during the option period
Your goal is to complete due diligence quickly so you can either negotiate repairs, accept the property as-is, or terminate before the deadline.
Book inspections fast
Schedule a licensed home inspector within 24 to 48 hours of the effective date. Start with a general inspection. Based on what that report shows, order specialty inspections as needed. Common specialty inspections include foundation, roof, HVAC, termite or wood-destroying insects, sewer scope, mold, and lead-based paint testing for pre-1978 homes.
Prioritize TCU-area inspection needs
Homes in Frisco Heights and nearby TCU streets include older properties, which can come with age-related issues. Focus on the items that tend to matter most locally:
- Foundation and structure: Expansive clay soils in the Dallas–Fort Worth region can cause movement. If you see stair-step brick cracks, gaps at exterior walls, or sticking doors and windows, consider a foundation specialist or structural engineer.
- Termite and WDI: Wood-destroying insect reports are common in Texas and are often required by lenders. Hire a licensed structural pest control operator.
- Sewer scope: Older neighborhoods may have older or clay sewer lines. A camera inspection can identify breaks, roots, or sags before you own the problem.
- Roof and HVAC: Sun and heat can age shingles and mechanical systems more quickly. A roofing or HVAC specialist can provide cost and remaining-life insights.
- Floodplain and insurance: Review local floodplain maps and insurance availability and cost early in your option period.
- Environmental risks in older homes: Ask about potential asbestos in older materials and consider lead-based paint testing for homes built before 1978.
Review title, survey, and HOA items
Request your title commitment, survey, and any HOA documents as soon as possible. Read the title commitment exceptions and confirm there are no surprise easements or liens. Review the survey for boundary lines, encroachments, and improvements. If the home had additions or major work, check Fort Worth permitting records. In some cases, permits or lack of permits can affect insurability and future resale.
Negotiating repairs and credits
If inspections reveal issues, you can submit a repair request during the option period. The seller can accept, reject, or counter. You can also ask for a price reduction or a closing credit to handle repairs after closing. Make sure any agreement is signed in writing before your option deadline.
As you weigh options, focus on safety, structure, and big-ticket items first. Foundation, major roof leaks, system failures, and environmental hazards usually carry the biggest risk.
If you cannot reach an agreement and no longer wish to proceed, you can terminate within the option period.
How to terminate correctly
To use your termination right, you must send written notice before the option deadline and deliver it exactly as your contract requires. Many buyers use a TREC Notice of Buyer’s Termination or other form named in the contract.
Confirm who must receive the notice and how delivery must occur. Once proper written notice is delivered on time, the contract ends. The seller keeps the option fee, and your earnest money is typically returned according to the contract’s escrow rules.
Extensions and timing strategies
If you need more time, ask the seller to extend the option period in writing. Sellers may agree in exchange for an additional option fee. In competitive Tarrant County markets, consider these approaches:
- Offer a higher option fee to secure a slightly longer option period.
- Compress your scheduling. Prioritize foundation, roof, and major systems first, then order any needed specialists.
- Consider pre-offer inspections on select homes when timing allows and the seller agrees. This can be rare but helpful.
- Use clear repair language, such as caps on seller repair costs, to create certainty for both sides.
Common mistakes to avoid
- Waiting to schedule your inspection. Early appointment slots fill quickly and you lose valuable time.
- Missing the 5:00 PM deadline in your contract. Your right to terminate is time-sensitive.
- Confusing option fee with earnest money. The option fee is typically nonrefundable. Earnest money follows escrow rules.
- Failing to deliver notice properly. The contract controls notice methods and recipients.
- Skipping HOA, survey, or flood insurance review. Non-physical issues can affect total cost and future plans.
- Overlooking foundation or sewer risks in older TCU-area homes. These can be costly if left unchecked.
Quick buyer checklist for Frisco Heights
- Pay the option fee and get a receipt.
- Book a licensed home inspector within 24 to 48 hours.
- Order specialty inspections as needed: foundation, WDI, sewer scope, roof, HVAC, mold, lead-based paint for pre-1978 homes.
- Request and review title commitment, survey, and HOA docs promptly.
- Check floodplain status and insurance availability and cost.
- Review Fort Worth permits and Tarrant County records if the home had renovations.
- Decide on repair requests or credits early so you can negotiate in time.
- If terminating, deliver written notice before the deadline and confirm escrow instructions for earnest money.
How The Clearfork Group helps
The option period is all about speed, clarity, and smart sequencing. As a Fort Worth-based team with integrated brokerage and lending, we help you move fast from contract to close. You get local guidance on which inspections to prioritize near TCU, who to call first, and how to structure timelines that match current market conditions.
On the financing side, a coordinated mortgage process gives sellers confidence in your offer and supports quick decisions during the option period. On the brokerage side, we manage the calendar, track the 5:00 PM deadlines, and negotiate repair strategies that match your goals. The result is a smoother path from first inspection to closing.
If you are ready to buy in Frisco Heights or anywhere in the TCU area, we are ready to help you set up a smart option period plan that protects your interests and keeps your deal on track.
FAQs
What is the Texas option period in a home purchase?
- It is a negotiated window after contract acceptance when you can terminate for any reason by paying a nonrefundable option fee and giving timely written notice.
Are option fees refundable if I back out during the period?
- No. The seller typically keeps the option fee, while your earnest money is usually returned if you terminate within the option period under the contract.
What is the difference between option fee and earnest money?
- The option fee buys your termination right and is usually nonrefundable. Earnest money is a separate escrow deposit that is handled under the contract’s escrow rules.
Can I extend the option period if I need more time?
- Yes, but only if the seller agrees in writing. Sellers often request an additional option fee in exchange for more days.
What happens if I miss the option deadline to terminate?
- You lose the unconditional right to terminate under the option. The contract stays in force and you would need to rely on other contract provisions, which are narrower.
Can the seller keep showing the home during my option period?
- The contract controls this. In practice, many sellers continue marketing the home and may accept backup offers until closing.
Ready to plan a smart option period for your TCU-area purchase? Schedule a Free Consultation with The Clearfork Group and we will help you move from inspections to closing with confidence.
