Buying in Colleyville is exciting, but the Texas option period can feel confusing if it’s your first time. You want time to inspect the home, verify details, and make a clear decision without risking your earnest money. In this guide, you’ll learn exactly how the option period works, what it costs, how to use it well in Tarrant County, and the steps to protect your purchase from day one. Let’s dive in.
Texas option period, defined
The option period is a negotiated, paid window in many Texas resale contracts that gives you the right to terminate for any reason within the agreed number of days. If you deliver proper written notice before the deadline, you typically get your earnest money back. The option period is contractual, not a state law. The exact terms in your signed contract control what happens.
This right is different from lender or appraisal contingencies. The option period is broader. You can walk away for any reason during the option window if you follow the contract’s notice rules.
How it works in practice
Length and timing
You and the seller agree to the number of days in writing. Common ranges are 3 to 10 days. In many North Texas deals, 5 to 7 days is typical, though longer or shorter terms are possible based on market conditions and property complexity. Deadlines are usually calendar days, and many standard forms set a cutoff time to deliver notices, often 5:00 p.m. local time. Always follow the timing rules in your signed contract.
Option fee vs. earnest money
- Option fee: You pay the seller a non-refundable fee for this right. The amount is negotiated. Many buyers see fees around $100 to $500, though it can be higher in competitive situations. If you close, the option fee is typically credited at closing.
- Earnest money: This is a separate deposit, held in escrow by the title company. It is not the same as the option fee. Earnest money is generally returned to you if you terminate properly during the option period. If you breach the contract, it can be at risk.
Termination and notice
To terminate under the option, you must deliver written notice before the option period expires. The contract spells out where and how to deliver it. Do not assume that a quick email is enough unless the contract specifically allows it. If you terminate on time as the contract requires, your earnest money is typically returned per the contract’s terms.
What to do during your option window
Use this time to complete due diligence so you can proceed with confidence.
- Order professional inspections: Start with a general home inspection, then add specialists as needed. In Colleyville, buyers often prioritize roof and attic, foundation, HVAC, pest, sewer scope, and pool inspections where applicable. If a property might be on septic, verify that and schedule a septic inspection.
- Review seller disclosures: Compare disclosures with what you see during inspections.
- Study HOA documents if applicable: Review covenants, bylaws, budgets, and any resale certificate for rules and costs.
- Review title and survey: Ask for the title commitment as early as possible. Look for easements or encroachments and review exceptions.
- Check flood and insurance factors: Review flood maps and obtain insurance quotes. Confirm any special requirements.
- Verify essentials: Confirm commute expectations, utilities, and practical needs tied to your lifestyle.
- Get repair estimates: If inspectors flag material items, request quotes quickly so you can decide whether to negotiate or terminate.
Colleyville-specific considerations
Market norms and negotiation
Local market conditions shape your leverage. In a seller’s market, you may see shorter option periods, smaller option fees, or even no option periods requested by sellers. In a balanced or buyer-leaning market, you can often negotiate more time or a larger fee credit at closing. Many North Texas buyers land on 5 to 7 days, but tailor your ask to the property and the pace of the market.
Common property checks around Tarrant County
Colleyville features a mix of custom homes and mature neighborhoods. Inspections that buyers often prioritize include:
- Roof and attic: Age and condition matter due to Texas storms and hail exposure.
- Foundation and slab: Look for signs of settling or cracking.
- HVAC systems: Confirm age, condition, and service history.
- Pest inspection: Termites and wood-destroying organisms are a Texas reality.
- Sewer or septic: Most properties are on municipal sewer, but verify. If septic, schedule a septic specialist.
- Pools: If present, request a pool inspection for equipment and shell integrity.
Title, taxes, and closing details
Ask for a title commitment early to review recorded easements or restrictions. Property taxes in Texas are a major factor in total cost of ownership. Review prior tax statements and any exemptions such as homestead, over-65, or disabled. Tax prorations at closing follow the contract, so check how those will be calculated.
A simple timeline to follow
Here is a planning example. Your exact dates and tasks should match your signed contract.
- Day 0: Deliver earnest money and pay the option fee per the contract. Keep receipts.
- Days 1–2: Order the general inspection and line up specialists. Review seller disclosures, HOA documents, and tax records.
- Days 3–5: Receive inspection reports and secure repair estimates for material items.
- Days 5–7: Decide whether to proceed, negotiate repairs or credits, or terminate. Send any written termination notice before the deadline stated in your contract.
Some documents, such as HOA resale packets or surveys, can take longer. Plan ahead if you know you will need them.
Smart negotiation tips
- Right-size the timeline: For a newer or well-documented home, 5 to 7 days may work. For older or custom homes, consider asking for 10 or more days if the market allows.
- Match the fee to the market: A modest option fee is common, but you can offer more in a competitive situation to make your offer stand out.
- Front-load scheduling: Book inspections immediately. Securing key specialists early gives you time to react.
- Consider an extension if needed: You can extend the option period only if the seller agrees in writing. The seller might require an additional fee.
- Keep leverage by acting early: Negotiate repairs or credits before your option deadline to preserve your strongest position.
Common mistakes to avoid
- Missing the deadline: If you do not deliver written termination before the deadline, you generally lose the unconditional right to terminate under the option.
- Assuming email is enough: Follow the delivery method required by the contract. When in doubt, deliver in multiple allowed ways and confirm receipt.
- Skipping specialized inspections: A general inspection is a start, but add experts for roof, foundation, HVAC, pool, pest, or sewer as needed.
- Confusing fees: The option fee is typically non-refundable, while earnest money is usually returned if you terminate properly during the option period.
- Waiting on repair bids: Without timely estimates, it is hard to decide or negotiate before the clock runs out.
Buyer checklist for the option period
Use this as your quick-reference list.
- Before contract:
- Get pre-approved and discuss likely inspections so you know how many days to request.
- On contract acceptance:
- Confirm the option period length, fee amount, and due dates in writing.
- Deliver earnest money and the option fee per instructions and obtain receipts.
- Order a general inspection right away and schedule specialists.
- Request seller disclosures, HOA documents, and prior tax bills.
- Ask for the title commitment and review any existing survey.
- During the option period:
- Review inspection reports and secure repair estimates.
- Decide to proceed or terminate before the deadline. If terminating, send required written notice exactly as the contract instructs.
- If continuing, submit repair requests or negotiate credits before time runs out.
- After the option period:
- If not terminated, finalize any repair or credit agreements in a signed amendment.
- If terminated, confirm return of earnest money and keep all documentation.
A stewardship approach to your purchase
Your home is both a sanctuary and a significant part of your long-term financial plan. A clear option period strategy helps you protect your investment and your peace of mind. With a thoughtful process, experienced guidance, and timely action, you can move forward with confidence.
If you would value concierge-level help managing inspections, timelines, and negotiations, reach out to our team. Day & Cantu Luxury Homes Group provides curated buyer representation across Colleyville and the surrounding North Texas suburbs.
FAQs
What is the Texas option period in a home purchase?
- It is a negotiated, paid window in many Texas contracts that lets you terminate for any reason within the agreed number of days if you deliver proper written notice.
How long is a typical option period in Colleyville?
- Many buyers use 5 to 7 days, though 3 to 10 days is common. Your strategy should match the property and market conditions.
Is the option fee refundable if I cancel?
- No. The option fee is typically non-refundable, but it is often credited at closing if you complete the purchase.
What happens to my earnest money if I terminate during the option period?
- If you terminate properly within the option window and follow the contract’s notice rules, your earnest money is typically returned per contract terms.
Can I extend the option period if inspections take longer?
- Yes, but only if the seller agrees in writing. The seller may require an additional option fee.
What is the deadline to deliver termination notice?
- The exact deadline is in your contract. Standard forms use calendar days and often set a cutoff time, commonly 5:00 p.m. local time. Deliver notice before the deadline.
Can I still negotiate repairs after the option period ends?
- You can ask, but the seller is not required to agree. Your unconditional right to terminate under the option ends when the option period expires.
What inspections do Colleyville buyers often order?
- General home inspection plus specialists for roof, foundation, HVAC, pest, sewer scope, and pools where applicable. Confirm whether the property is on sewer or septic.
How do property taxes factor into my decision in Tarrant County?
- Texas property taxes are a major cost. Review prior tax statements and exemptions, and understand how prorations will be handled at closing per your contract.
Ready to take your next step with a calm, expert process? Connect with Unknown Company to plan your Colleyville purchase with confidence.
