You just got an offer accepted on a Temple home and heard the term “option period.” It sounds important, and it is. This short window is your chance to inspect the property, ask for repairs or credits, and decide if the home is right for you without risking your earnest money. In this guide, you’ll learn what the option period is, how it works in Texas contracts, what to do in Bell County during that time, and the simple steps to protect your position. Let’s dive in.
Option period, explained
The option period is a negotiated, buyer-only window in Texas contracts that begins on the Effective Date. During this time, you may terminate the contract for any reason by sending written notice before the deadline. You pay a separate option fee for this right. If you terminate in time, your earnest money is typically returned, while the seller keeps the option fee.
This right comes from standard Texas forms such as the TREC One to Four Family Residential Contract (Resale). The contract sets the length of the option period in days and outlines how notices must be delivered. Follow the delivery instructions exactly as written in your contract.
How long does it last in Temple?
The length is negotiable. In Central Texas, you often see 3 to 10 days, with 7 days common. In multiple-offer situations, buyers sometimes offer shorter periods to be more competitive.
Effective Date and the clock
The Effective Date is when the last party signs and delivery is complete. Your option clock starts that day. Other deadlines in the contract, like survey or loan, may run on their own schedules.
Delivering the option fee
Your contract will say where and when to deliver the option fee. It may go to the seller or to escrow. Confirm details on Day 0 and deliver it on time.
What happens at expiration
If you do not send a written termination before the deadline, you lose the unilateral right to cancel under the option clause. The contract continues toward closing, and your earnest money may be at risk only if you later breach for other reasons.
Option fee vs. earnest money
- Option fee: A separate, usually smaller amount that you pay for the right to terminate during the option period. It is nonrefundable, and the seller keeps it if you terminate.
- Earnest money: A larger deposit held in escrow. If you terminate properly during the option period, it is typically returned to you.
- Typical ranges: Option fees often run about $100 to $500 in many Texas markets, and can be higher when competition is strong. Earnest money commonly ranges from about $1,000 to $5,000 or a percentage of the purchase price. Local practices change, so rely on current guidance from your agent and title company.
- At closing, the option fee is usually credited toward your funds due.
What to do during your option period
Use your time to investigate the home and decide your next steps. Stay organized and move fast.
A simple 7-day path
- Day 0 (Effective Date): Confirm the option deadline, delivery instructions for the option fee, and how to send notices. Deliver the option fee as required.
- Day 1: Order the general home inspection and a wood-destroying insect (termite) inspection. Request seller disclosures, utility history, HOA documents, survey, and any permit history.
- Day 2–3: Complete the general inspection. If the property has a septic system, well, or pool, schedule those tests now.
- Day 3–5: Review written reports. Get contractor estimates for larger items like foundation, roof, HVAC, electrical, or plumbing.
- Day 5–6: Decide whether to request repairs or credits, or to terminate. Put requests in writing using the proper contract form.
- Day 7 (expiration): If you need more time, negotiate an extension in writing before the deadline. If terminating, send written notice and confirm receipt before the option window closes.
Priority inspections in Bell County
A strong general inspection is your foundation. From there, add specialty checks that match Temple and county conditions.
- General home inspection: Structure, roof condition (visible), plumbing, electrical, HVAC, interior, exterior, appliances, and signs of moisture.
- Wood-destroying insect (termite) inspection: Termites are common in Texas and a WDI report is often required by lenders.
- Foundation/structural evaluation: Many Central Texas homes are slab-on-grade. If movement is suspected, bring in a structural engineer or foundation specialist quickly.
- Roof evaluation: If access is limited or age is a concern, hire a qualified roofer for a closer look.
- HVAC check: Older systems can be costly to replace. Verify function and estimate remaining life.
- Sewer/septic and well: Inside Temple city limits, many homes have municipal service. For rural or county parcels, septic and well inspections can take longer, so schedule on Day 1.
- Pool/spa: Inspect structure, pumps, heaters, and safety features.
- Mold or air quality: Order testing if you see water intrusion or visible growth.
- Appliances and systems: Garage doors, irrigation, chimney/fireplace, and sewer scopes as needed.
Local checks for Temple-area buyers
- Utilities and permits: Confirm water/sewer availability and permit history with local records.
- Property data: Verify tax and property characteristics through county records.
- Flood risk: Review flood maps, especially near creeks or low-lying areas.
- Easements and restrictions: Check recorded documents for plats and deed restrictions.
How to negotiate repairs or credits
Start with facts. Use inspection reports and contractor estimates to support your requests. Be specific and put everything in writing.
- Ask for repairs, credits, or price adjustments based on major findings and safety items.
- Document the exact repair scope and who will do the work, or agree on a clear credit amount.
- Keep copies of all reports, bids, and communications.
- If an agreement is not possible, consider terminating within the deadline.
Common mistakes to avoid
- Waiting to schedule inspections. Specialty tests like septic or well can take 24 to 72 hours.
- Missing the deadline. A late termination notice will not preserve your option rights.
- Sending notice the wrong way. Follow your contract’s delivery methods exactly and confirm receipt.
- Relying on verbal promises. Put all repairs, credits, and extensions in writing and get signatures.
When to ask for an extension
If you need more time for estimates or specialty reports, request an extension before the option period expires. Be prepared to offer an additional option fee. Make sure the extension is documented in writing and signed by both parties.
Final take
The option period gives you control, clarity, and time to make a confident decision on a Temple or Bell County home. When you use it well, you can investigate the property, negotiate fair solutions, or walk away with your earnest money protected. If you want a calm, step-by-step plan for your next offer, reach out to the local team that guides Central Texas buyers every day. Connect with Black White Real Estate for clear next steps and local insight.
FAQs
What is the option period in Texas real estate?
- It is a short, negotiated window in the Texas contract when you can terminate for any reason by sending written notice before the deadline.
How much are option fees and earnest money in Temple?
- Option fees often range about $100 to $500, while earnest money is commonly $1,000 to $5,000 or a percentage of price, depending on the deal.
Do I get my option fee back if I terminate?
- No; if you terminate during the option period, the seller keeps the option fee, and your earnest money is typically returned.
Which inspections should I prioritize in Bell County?
- Start with a general home inspection and a termite inspection, then add foundation, roof, HVAC, septic/well, and other specialty checks as needed.
How do I terminate during the option period?
- Send written notice using the contract’s allowed delivery methods and confirm receipt before the option deadline expires.
Can I extend the option period if reports are delayed?
- Yes, if the seller agrees; request an extension in writing before the original deadline and expect to pay an additional option fee.
What happens if I miss the option deadline?
- You lose the unilateral right to terminate under the option clause; other contract remedies may exist but are more limited and riskier.
