Texas Option Period Explained For Southlake Buyers

Buying in Southlake can move fast, and the Texas option period is your best tool to slow things down long enough to inspect, negotiate, and protect your earnest money. If you are unsure how long it should be or what the option fee covers, you are not alone. This guide walks you through the basics, local timelines and costs, and a practical plan to use your option period well. Let’s dive in.

What the Texas option period is

The option period is a short, negotiated window in your contract when you may terminate for any reason and receive your earnest money back. It is a contractual right in the standard Texas forms, not a separate law. You and the seller agree on two things: the length of the period and the option fee.

The Texas Real Estate Commission provides the promulgated forms and consumer guidance that define these rights and timelines. You can review the official framework on the TREC website.

Option fee vs. earnest money

• Option fee: A separate, usually non-refundable fee you pay for the unrestricted right to terminate during the option period. If you close, it is usually credited to your purchase price according to the contract.
• Earnest money: A deposit held by the title company that shows good faith. If you terminate within the option period correctly, your earnest money is typically returned per the contract.

For broader consumer resources on Texas contracts and standard practices, see Texas REALTORS.

Timing and effective date

The option period starts on the contract’s effective date, which is when all parties have signed and acknowledged. The deadline is counted in calendar days unless stated otherwise in the contract. You need to know this date the same day your offer is accepted.

How to terminate correctly

If you decide to terminate, you must send written notice to the parties listed in your contract before the deadline. Keep proof of delivery such as email timestamps or a receipt. This preserves your right to a return of earnest money under the contract.

Typical lengths and fees in Southlake

Across Texas, option periods commonly run 3 to 10 days. In the DFW suburbs, 5 to 7 days is common in balanced conditions. In hotter segments where listings receive multiple offers, buyers sometimes shorten to 0 to 3 days or even waive the option period to compete.

Option fees are typically in the range of about 100 to 350 dollars. Many transactions land between 100 and 250 dollars. In competitive or higher-priced situations, buyers may offer a larger fee to make a longer option period more acceptable to the seller.

Southlake is an active, often competitive market. On premium or luxury homes, you may still want enough time for specialized inspections because the properties are larger and more complex. Sellers may expect a larger fee or a tighter timeline, so expect to negotiate both the number of days and the fee amount.

Your option period game plan

Use this step-by-step checklist from acceptance to the deadline.

Day 0: Confirm dates and pay fees

• Verify the effective date and your exact option deadline.
• Pay the option fee as the contract specifies and get a written receipt. Also confirm your earnest money deposit with the title company.
• Loop in your agent and set the inspection schedule right away.

Days 1 to 3: Schedule and inspect

• Book a general home inspection immediately. Many DFW inspectors can be on site within 24 to 72 hours.
• For Southlake homes, consider specialists early: HVAC, roof, foundation or structural, pool or spa, plumbing and electrical, and pest inspection.
• If the property has unique systems like septic or a well, schedule those inspections promptly. Confirm how quickly each inspector can deliver written reports with photos.

Days 2 to 5: Review reports and price repairs

• Ask your inspector to prioritize safety issues, major systems, and structural items.
• If you plan to request repairs or credits, get contractor estimates for larger items. Written estimates help your negotiation.
• Coordinate with your agent to separate material issues from minor or cosmetic findings.

Before the deadline: Decide and act

You have three paths:

• Terminate in writing before the deadline. The seller keeps the option fee, and earnest money is handled per the contract.
• Proceed as-is and move toward closing.
• Request repairs or credits in writing and negotiate. If you want to keep the unconditional termination right, make sure you send the request and keep the option period active until you reach agreement.

After the option period

If you remain in contract, you no longer have an unrestricted termination right under the option clause. You can still rely on other contract terms and timelines, such as title or financing, but those are separate provisions. Keep copies of all reports, estimates, and notices.

Negotiating repairs with Southlake sellers

Focus on items most sellers view as material: roof leaks, electrical hazards, HVAC failures, significant plumbing issues, and structural concerns. Safety and habitability tend to carry the most weight. Cosmetic items are less effective negotiation points unless they offset price in a clear way.

There are three common outcomes:

• Seller completes specific repairs with licensed contractors.
• Seller provides a credit at closing so you can manage the work after closing.
• Seller declines repairs, and you either accept, negotiate price, or terminate within the option period.

Credits at closing are often simpler than coordinating contractors before closing. If you want a certain standard of workmanship or a warranty from a specific vendor, you may prefer repairs done by the seller before closing or a credit large enough to hire your chosen pro later.

Smart strategies in competitive situations

• Present contractor estimates with your request. Clear numbers increase credibility.
• Prioritize safety and big-ticket systems. Limit small items and keep the ask focused.
• Consider a larger option fee if you need a longer inspection window. That can help in multiple-offer situations, especially on complex properties.
• If you shorten the option period to strengthen your offer, plan inspections the same day or next day. Line up back-up inspectors in case schedules slip.

Risks and pitfalls to avoid

• Waiving or shortening your option period removes leverage. Only do this if you are comfortable with the property and your inspection plan.
• Misdelivering the option fee or termination notice can cause disputes. Follow the contract exactly and get receipts.
• Missing the deadline can lock you into a property you did not intend to accept. Work backward from the cutoff and act early.
• Earnest money disputes sometimes arise after termination. The title company may hold funds until the parties agree in writing or there is a legal resolution. If a dispute occurs, consider consulting a Texas real estate attorney.

Local Southlake checks

Southlake has many HOA communities. Review the HOA resale certificate, rules, and fees during your option period. Clarify any planned changes or community projects that could affect your use or costs.

For permit and code considerations, confirm whether past work was properly permitted and closed out. You can explore local processes and contacts on the City of Southlake site. For property records and county-level resources, see Tarrant County and the Tarrant Appraisal District.

How a builder-trained agent helps

A clear inspection plan and fast coordination can make the difference between a smooth purchase and missed timelines. A buyer’s agent with construction experience can help you read reports, scope repairs accurately, and decide when to request credits versus seller-completed work.

With 15 years in custom home building and remodeling, I help you focus on what matters most in Southlake homes: structure, mechanical systems, roofing, and water management. You get realistic cost ranges and a negotiation plan that fits the market. If you want that level of guidance, connect with Bryan Bell to talk through your goals.

FAQs

What is the Texas option period and how does it protect earnest money?

• It is a negotiated window in the contract when you can terminate for any reason; if you terminate in writing before the deadline, your earnest money is typically returned per the contract.

How long is a typical option period in Southlake?

• Many DFW transactions use 5 to 7 days, though it can range from 3 to 10; in very competitive situations buyers may shorten to 0 to 3 days or waive it.

What is a normal option fee for Southlake homes?

• Expect roughly 100 to 350 dollars, with many deals between 100 and 250; higher-end or competitive listings may see larger fees for longer periods.

Who do I notify if I choose to terminate in Texas?

• Send written notice to the parties specified in your contract, often the seller or seller’s agent, and keep proof of delivery before the deadline.

Can I still negotiate repairs after the option period ends?

• You can ask, but you lose the unconditional right to terminate under the option clause; any agreement depends on the seller’s willingness at that point.

What inspections should Southlake buyers prioritize?

• Start with a general inspection, then consider HVAC, roof, foundation or structural, plumbing and electrical, pest, and pool or spa, plus septic or well if applicable.