Blog / Buying
What is the option period in a Texas home contract?
Quick answer. The option period is a negotiated number of days after a Texas home contract is signed during which the buyer can terminate for any reason. The buyer pays the seller an option fee for that right. It is the buyer's window for inspections and repair negotiations.
By Michael O'Neal, Broker and REALTOR®, Keller Williams Realty Northeast
Published October 11, 2026
How does the option period work?
In the standard Texas resale contract, the buyer pays an option fee and receives an unrestricted right to terminate within an agreed number of days. If the buyer terminates in time, the earnest money is returned and the seller keeps the option fee.
How long is it and what does it cost?
Both the length and the fee are negotiable. They vary with the market and with how competitive the offer needs to be.
What should a buyer do during the option period?
Schedule inspections right away, review the seller disclosure and any HOA documents, get repair estimates, and negotiate repairs or price before the deadline.
When does it end?
The contract counts calendar days and the option period ends at 5:00 p.m. local time on the last day. Missing that deadline means the right to terminate under the option is gone.
What does a seller need to know?
A longer option period keeps your home off the market for longer with less commitment from the buyer. I explain that trade-off on every offer I review with a seller.
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