You found a home you love, wrote an offer, and it was accepted. Now the clock starts ticking. In Texas, the option period is your short window to inspect, ask questions, and decide whether to move forward without risking your earnest money. Understanding it can save you stress and protect your budget. In this guide, you will learn how the option period works in San Antonio, what fees and deadlines to expect, and how buyers and sellers can use it to their advantage. Let’s dive in.
What is the option period?
The option period is a negotiated number of days in your contract that lets you, the buyer, terminate for any reason within that timeframe. You pay an option fee for this right. If you terminate properly before the deadline, you typically get your earnest money back.
The option period exists to give you time for inspections and due diligence. You can gather facts, price repairs, review title and HOA documents, and confirm you want to proceed. The exact steps and deadlines are controlled by the language in your signed contract.
Option fee vs. earnest money
These two payments serve different purposes.
- Option fee: Paid for the right to terminate during the option period. It is usually non-refundable and typically goes to the seller, but it may be credited to you at closing if the sale completes depending on your contract.
- Earnest money: A deposit held in escrow that shows good faith. It is applied toward the purchase price at closing or handled according to the contract if the deal does not close.
If you terminate during the option period by the contract deadline and method, you usually receive your earnest money back. The seller typically keeps the option fee unless both sides agreed otherwise in writing.
How the option works in Texas contracts
Your contract sets three key items: the number of option days, the option fee amount, and how and when payment and notices must be delivered. The option right is created only if the option fee is delivered exactly as the contract requires.
To terminate, you must send written notice to the party identified in the contract before the option period expires. Follow the delivery method in your contract, such as email or hand delivery, and keep proof of delivery.
If you do not terminate on time, the option right expires. The contract continues under its other terms, and any later termination must fit another contingency or be by mutual agreement.
Timelines and delivery in San Antonio
San Antonio transactions commonly move fast. You should line up inspections as soon as your offer is accepted and the contract is effective. Many buyers try to complete general inspections within the first few days so there is time to review reports and negotiate repairs.
Your contract controls how days are counted and when the option period ends. It also lists where and how to deliver the option fee and any notices. Do not guess on deadlines. Confirm them with your agent and the title company, and keep receipts for option fee payment and any termination notice.
What buyers should do during option days
Use the time to inspect, verify, and negotiate. Typical steps include a general inspection and, if needed, specialists for roof, HVAC, foundation, pest, septic, or other systems. You can also review title, HOA rules, deed restrictions, and any survey or floodplain questions.
If issues arise, you can request repairs or credits. The seller is not required to agree, so send requests promptly and be ready to prioritize. Remember, the option right is separate from appraisal and loan approval. Appraisals and underwriting follow their own contract timelines.
Seller strategies during option days
If you are selling, the option period is a chance to keep the deal on track. Provide reasonable access for inspections and respond quickly to repair requests. Consider whether to offer repairs, credits, or stand firm based on market conditions and the property’s condition.
Confirm receipt of the option fee and earnest money and document everything. If the buyer terminates within the option period, expect to retain the option fee unless your contract says otherwise.
Local norms: days and fees in San Antonio
In many Texas markets, option periods commonly run about 5 to 10 days for standard inspections. In balanced conditions, 7 to 10 days is typical. In hotter competition, buyers may shorten or even waive the option period to strengthen their offer.
Option fees often range from about $100 to $500. In competitive situations, buyers may offer $500 to $1,000 or more, or choose to waive. Amounts vary by price point, property condition, and how competitive the specific neighborhood is at that moment.
Common pitfalls to avoid
- Missing the termination deadline. If you miss it, the option right expires.
- Paying the option fee late or to the wrong party. This can invalidate the option right.
- Assuming an appraisal issue is covered. Appraisal and financing protections depend on separate contract terms.
- Sending notice the wrong way. Deliver termination exactly as your contract requires and keep proof.
- Waiting too long to schedule inspections. Slots fill quickly, especially on weekends.
Step-by-step checklists
Buyer checklist during the option period
- Verify the option days and fee amount in your signed contract.
- Confirm how and when to deliver the option fee, then obtain and keep a receipt.
- Book inspections immediately and get written reports before the deadline.
- Review title, HOA rules, deed restrictions, survey, and any utility or flood questions.
- If terminating, send written notice before the deadline exactly as the contract states, and save proof of delivery.
- If continuing, prepare repair or credit requests early and be ready to negotiate.
Seller checklist during the option period
- Confirm and document receipt of the option fee and earnest money.
- Provide reasonable access for inspections and keep a record of entry times.
- Review repair or credit requests and respond promptly.
- Understand you typically keep the option fee if the buyer terminates on time.
Disputes and what happens next
If a buyer terminates properly during the option period, the contract ends and earnest money is typically returned to the buyer. The seller usually keeps the option fee. If a buyer defaults after the option period without a contractual basis, the seller may pursue remedies available under the contract.
If there is a dispute over earnest money, the title or escrow company will follow the escrow instructions in the contract. Some contracts include mediation, arbitration, or litigation procedures for resolving disagreements.
Get local guidance that moves you forward
The option period is short, and details matter. From scheduling inspectors on day one to delivering notices correctly, having a local expert can protect your time and money. If you are buying or selling in San Antonio or Bexar County, connect with a trusted guide who knows the market and the process. Reach out to Blain Johnson to plan your option strategy and keep your closing on track.
FAQs
What is the option period in Texas real estate?
- A negotiated window in your contract that lets you terminate for any reason within the set days in exchange for an option fee.
How much is the option fee in San Antonio?
- It commonly ranges around $100 to $500, with $500 to $1,000 or more in competitive situations, depending on price point and market.
Is the Texas option fee refundable to the buyer?
- Usually no, the seller typically keeps the option fee, though it may be credited at closing if the contract says so.
When does the option period start in Texas contracts?
- It begins as your contract specifies and depends on timely delivery of the option fee as required by the contract.
Can I terminate for any reason during the option period?
- Yes, if you deliver written termination notice before the deadline using the method stated in your contract.
How are option days counted in a Texas contract?
- The contract controls how days are counted and when the period ends, so follow its exact wording.
What happens if I miss the option deadline to terminate?
- The option right expires, and later termination must fit another contract contingency or be by mutual agreement.
Who holds earnest money and who gets the option fee?
- Earnest money is typically held in escrow by the title company or broker, while the option fee typically goes to the seller.
Does a low appraisal let me cancel during the option period?
- Only if your contract includes an appraisal or financing contingency that provides that right, which is separate from the option period.
