Option Period in Texas: A Simple Guide for Flower Mound Buyers

Wish you had a short, low-risk window to make sure a Flower Mound home truly fits before you commit? In Texas, you do. It is called the option period, and it gives you the right to walk away for any reason within a set number of days after your offer is accepted. In this guide, you will learn what the option period is, how it works, typical timelines and costs in Flower Mound, what to inspect first, and how to negotiate with confidence. Let’s dive in.

What is the Texas option period?

The option period is a negotiated time in a Texas resale contract that gives you an unrestricted right to terminate the deal for any reason. This right exists only if your contract includes the option language and you pay an option fee to the seller.

• Purpose: It creates a short, paid window to complete inspections, review HOA and property documents, and decide whether to move forward.
• Refunds: If you terminate properly within the option period, you usually get your earnest money back. The option fee is typically nonrefundable but is often credited to you at closing if you proceed.

How the option period works

The option period is part of the standard Texas resale contract language. A few mechanics matter most.

Option fee vs. earnest money

• Option fee: A separate payment that buys your right to terminate during the option period. It is usually nonrefundable, and many contracts credit it back to you at closing.
• Earnest money: A larger deposit that shows good faith. If you end the contract within the option period using proper notice, the earnest money is typically returned to you per the contract.

Timing and termination

• Your notice must be in writing and delivered before the option period expires. Timing is critical.
• If you terminate properly during the option period, the contract ends and the seller usually keeps the option fee.

What the option period does not cover

• Repairs: The seller is not required to make repairs. You can request repairs or credits, then choose to proceed or terminate before the deadline.
• Financing or appraisal: Lender approval and appraisal are separate items with their own timelines and clauses.

Delivery and proof of notice

• Follow the delivery methods listed in your executed contract, such as email or hand delivery.
• Keep proof of delivery. Screenshots, email receipts, and form notices help avoid disputes.

Typical timelines and costs in Flower Mound

Every deal is negotiated, but here is what buyers in Flower Mound and the wider DFW area often see:

• Option period length: Commonly 3 to 10 days. A 7-day option period is a frequent balance between thorough review and seller expectations.
• Competitive conditions: In hot markets, sellers may prefer shorter periods, like 0 to 3 days. In slower markets, longer periods may be possible.
• Option fee: Often in the $100 to $500 range, sometimes higher to strengthen an offer.
• Inspection costs you might plan for:
  • General home inspection: about $300 to $600
  • Specialized inspections, if needed: $100 to $500 each for items such as roof, HVAC, foundation, sewer scope, pool, or septic
  • Wood-destroying insect inspection: often $50 to $150

Smart inspection plan

Use your option period to focus on health, safety, and big-ticket systems first. Priorities usually include:

1. General home inspection for systems, structure, and safety
2. Wood-destroying insect inspection
3. Roof inspection if age or condition is uncertain
4. HVAC inspection for age and serviceability
5. Sewer scope for older areas or if slow drains are noted
6. Pool inspection if applicable
7. Septic inspection if applicable
8. Specialty follow-ups, such as foundation engineer or chimney, if flagged by the first report

7-day option period checklist

Here is a practical timeline for a 7-day window:

• Day 0 (contract signed): Pay the option fee per contract. Confirm deadlines. Schedule a general inspection and any likely specialists. Request HOA and seller disclosure documents.
• Day 1 to 2: Complete the general inspection and WDI. Order roof, sewer, HVAC, pool, or septic inspections as needed.
• Day 3 to 4: Receive and review reports with your inspector and agent. Identify safety and major system issues. Request contractor estimates for larger items.
• Day 4 to 6: Prepare a written repair or credit request. Prioritize the big items. Send your request to the seller using the contract’s delivery method.
• Day 6 to 7: Negotiate repairs or credits. If you do not reach an acceptable agreement, deliver a written termination before the option deadline.
• Before the deadline: Decide to proceed, accept negotiated terms, or terminate in writing.

Negotiation tips that work

• Focus on function and safety first. Electrical hazards, roof leaks, foundation movement, or major HVAC failures deserve priority.
• Use documentation. Include inspection pages or written contractor estimates to support your requests.
• Be specific. List exact repairs, a repair cap, or ask for a closing credit instead of open-ended demands.
• Put it in writing. Use the proper amendment form to record any agreed repairs, credits, or limits. Avoid relying on verbal promises.

Local Flower Mound factors

• HOA review: Many Flower Mound neighborhoods have HOAs. Review bylaws, resale certificates, and budgets during the option period to understand fees, use restrictions, and any special assessments.
• Age and systems: In established subdivisions, plan for roof age, plumbing wear, or possible foundation settlement. Order targeted inspections early if the general inspection flags concerns.
• Title and survey: The title company will work from Denton County records. Ask your agent to push for early delivery of the title commitment so any exceptions or survey issues surface quickly.
• Flood and drainage: Review seller disclosures and available floodplain information. If drainage is a concern, discuss flood insurance with your insurer and factor costs into your decision.

Common pitfalls to avoid

• Missing the deadline. Even a great repair plan will not help after the option period ends.
• Using the wrong notice method. Follow the contract rules for delivery and timing.
• Waiving the option in a hot market without a plan. If major issues appear later, your choices may be limited.
• Counting on the lender to flag problems. Appraisals focus on value and basic safety, not full condition.

How your agent helps you succeed

During the option period, your agent can make the difference between stress and clarity. A strong buyer’s agent will:

• Explain your deadlines and confirm the option fee is delivered as required.
• Recommend trusted local inspectors and help schedule them fast.
• Review inspection reports with you and prioritize the key items.
• Gather contractor estimates for leverage in negotiations.
• Draft and deliver repair requests, amendments, or termination notices in writing with proof of delivery.
• Coordinate with the title company on early title commitment and survey items.

When you want senior-level guidance and a calm, step-by-step process, reach out to Maggie Love. Let’s connect early so you can use your option period with confidence and move forward on the right home.

FAQs

What is the option period in a Texas home purchase?

• It is a negotiated window in the contract, purchased with an option fee, that lets you terminate for any reason before the deadline.

How long is a typical option period in Flower Mound?

• Many buyers choose 5 to 7 days, although 3 to 10 days is common and shorter timelines may be used in competitive markets.

How much is the option fee for DFW buyers?

• It is negotiated, often $100 to $500, and is typically credited to you at closing if the sale completes.

Do I get my earnest money back if I terminate during the option period?

• If you deliver written notice before the deadline using the contract’s delivery method, the earnest money is typically refunded and the seller keeps the option fee.

Which inspections should I order first during the option period?

• Start with a general home inspection and a wood-destroying insect inspection, then add roof, HVAC, sewer scope, pool, or septic based on the property.

What if the seller refuses to make repairs after inspections?

• You can accept the home as is, request credits, or terminate before the option period ends if you are not comfortable with the condition.

Is the appraisal part of the option period in Texas?

• No. The appraisal is handled later by your lender. Appraisal and loan approval have separate timelines and clauses.