Buying a home in College Station is exciting, but the contract language can feel confusing. One of the most important parts to understand is the Texas option period. Used well, it gives you time to inspect, ask for repairs, and decide if the home truly fits your needs. In this guide, you will learn what the option period is, how timelines work, which inspections to prioritize, and how to use this window to protect your interests. Let’s dive in.
What the option period is
The option period is a negotiated window in a Texas purchase contract that gives you the unconditional right to terminate the contract for any reason. This right exists only if the contract includes an option period and you pay the agreed option fee to the seller. The terms appear in the TREC One to Four Family Residential Contract or a similar approved form.
During the option period, you can complete inspections, review documents, request repairs or credits, or choose to terminate. If you terminate correctly and on time, your earnest money is usually refundable per the contract, but the option fee is typically non-refundable.
Option fee vs. earnest money
- Option fee: A separate, usually smaller fee paid to the seller for the right to terminate. It is typically non-refundable. Whether it is credited to you at closing depends on the contract wording.
- Earnest money: A larger good-faith deposit held in escrow by the title company. It is refundable only under the contract’s terms, including when you terminate properly during the option period.
What you can do during this time
- Order inspections: general home, WDI/termite, roof, HVAC, and more.
- Review disclosures, title commitment, survey, and HOA documents.
- Request repairs, credits, or a price adjustment. If talks stall, you can terminate before the option period expires.
Timelines and deadlines in College Station
The option period usually starts on the contract’s effective date, which is the date all parties have signed and the contract is binding. Length is negotiable. In many Texas markets, you will see 5 to 10 days, though shorter periods are common in competitive situations.
Contracts define how days are counted and when the option period ends. Many use calendar days, and expiration often occurs at midnight on the last day. Your exact contract governs, so confirm the time and delivery requirements in writing.
If you have a 7-day option that expires at midnight on Day 7, your written termination must be delivered before the deadline. Do not wait until the last hour. Inspections, review of reports, and contractor bids can take time.
Delivering notice correctly
Termination must be delivered in writing to the person or entity named in the contract. This is often the seller or the seller’s agent, and sometimes the title company as well. Local title and escrow companies in Brazos County frequently manage earnest money and receive notices, but always follow your signed notice and delivery clause.
Keep proof of delivery. Email with a read receipt, a delivery confirmation through your brokerage system, or title company acknowledgment can help confirm timing.
Handling option fee and earnest money
- Pay the option fee as the contract instructs. It often goes to the seller or the listing broker’s trust account.
- Deposit earnest money with the title company by the deadline in the contract. If you terminate during the option period as allowed, your earnest money is usually refundable under the contract, while the option fee remains with the seller.
Inspections and due diligence
Your goal is to learn everything material about the home early. Start scheduling as soon as you have an effective date. Prioritize inspections that are harder to book or that could reveal large costs.
Recommended inspections and reviews:
- General home inspection covering structure, roof, electrical, plumbing, and HVAC.
- Wood-destroying insect inspection, often required by lenders in Texas.
- Roof evaluation, especially for older roofs or visible wear.
- HVAC service check to assess age and condition of units.
- Sewer line scope for older properties or if backups are a concern.
- Septic inspection if the home is not on municipal sewer.
- Pool inspection if applicable.
- Specialty inspections as needed: mold, chimney, radon, or a structural engineer if cracks or foundation movement are a concern.
Other due diligence items:
- Review the Texas Seller’s Disclosure Notice.
- Review the title commitment, recorded easements, deed restrictions, and any liens.
- Obtain or confirm a current survey. Order a new one if boundary questions exist.
- Review HOA documents and resale certificates, including rules, fees, rental restrictions, and pending assessments.
- Check the City of College Station permit history for additions or renovations.
Local issues to watch in College Station
- Student rental areas near Texas A&M can have higher tenant turnover. Inspect mechanical systems and finishes with care.
- Older neighborhoods may show age-related items like foundation settlement, roof wear, or aging utilities.
- Soil and drainage can affect foundations. Consider grading and drainage evaluations if you see pooling water or uneven terrain.
- Rural Brazos County properties may use septic systems. These inspections can take longer to schedule, so book early.
Strategy and negotiation tips
The option period is your best window to discover defects and negotiate fair solutions. Use credible inspection reports and contractor bids to support your requests.
- Ask for repairs, a credit, or a price reduction based on findings. Use a written repair amendment so both sides agree to the exact scope.
- If the seller declines to address major issues, you can terminate during the option period. Waiting until after it ends reduces your leverage.
- Coordinate with your lender. Lender-required repairs or appraisal issues may arise after the option period. Know what your loan will require and plan accordingly.
In a competitive market
College Station can move fast. To strengthen your offer, you might shorten the option period or offer a larger option fee. This can make your terms more attractive to a seller, but it increases your risk and out-of-pocket exposure if you later terminate. Work with your agent to strike a balance that fits your comfort level and the property’s condition.
After the option period
Your unilateral right to terminate under the option clause ends when the deadline passes. Other contingencies, such as financing or appraisal, may still apply if included in your contract. If the seller agrees to repairs, get the terms in writing, including who will complete the work, timelines, and whether the work will be warranted.
Common pitfalls to avoid
- Missing the deadline to send written termination. Minutes matter.
- Assuming the option fee is refundable. It usually is not.
- Waiting too long to schedule specialty inspections like septic or structural.
- Relying on verbal promises about repairs. Use signed amendments.
- Confusing earnest money procedures. Confirm with the title company.
Quick College Station checklist
- Day 0 (effective date): Confirm option length and start date. Pay the option fee per the contract. Calendar your deadline with reminders.
- Day 1: Book your general inspection and any specialty inspections. Request disclosures, HOA docs, survey, and title commitment.
- Days 1–4: Review reports. Order contractor bids for significant repairs. Schedule septic or sewer scopes if needed.
- Days 4–6: Decide on your strategy. Prepare a written repair request or decide to terminate.
- Before the deadline: Deliver written termination if needed. If negotiating, finalize and sign repair amendments.
- After the option period: Move forward with appraisal, any lender conditions, title work, and closing prep.
Move forward with a local guide
A well-run option period saves you time, money, and stress. With quick scheduling, clear documentation, and smart negotiation, you can protect your earnest money and move toward closing with confidence. If you want a steady hand to manage timelines, inspections, and repair talks, connect with a local expert who knows College Station and the Brazos Valley inside and out.
Have questions or a home in mind? Schedule a Consultation with Deborah Stepanek for one-on-one guidance through your option period and beyond.
FAQs
What is the Texas option period in a home purchase?
- It is a negotiated window that gives you the right to terminate the contract for any reason if you pay an option fee, as set in the TREC contract.
How long is a typical option period in College Station?
- Many buyers negotiate 5 to 10 days, though shorter periods are common in competitive situations and longer periods can be negotiated.
What is the difference between the option fee and earnest money?
- The option fee is a small, typically non-refundable payment to the seller for your termination right. Earnest money is a refundable deposit held in escrow under the contract’s terms.
When does the option period start and end?
- It usually begins on the effective date of the contract and ends at the time stated in the contract, often at midnight on the last day. Always confirm your contract’s exact language.
How do I terminate during the option period?
- Deliver written termination notice to the recipient named in your contract before the deadline. Keep proof of timely delivery.
What inspections should I prioritize in College Station?
- Start with a general home inspection and WDI/termite check, then add roof, HVAC, sewer scope, or septic and other specialty inspections based on the home’s age and location.
Can the option fee be credited back to me at closing?
- Sometimes. Many contracts allow it to be credited if the transaction closes, but this depends on the exact wording. Review your contract with your agent.
What happens if I miss the option period deadline?
- You lose the unilateral right to terminate under the option clause. Other contingencies may still apply only if they are in your contract.
