The Texas Option Period Explained
Unique to Texas, the option period is your most powerful protection as a buyer. Here is how it works and what to do during those critical days.
Get Expert Buyer GuidanceAt a Glance
Option period basics
Typical Duration
7 – 10 days
Negotiable between buyer and seller. In El Paso, 7 to 10 days is standard for most residential transactions.
Option Fee
$100 – $500
Paid directly to the seller. Non-refundable, but credited toward the purchase price at closing.
Unique to Texas
Yes
Most states use contingency-based contracts. Texas is one of the few states with a paid option period that gives buyers unrestricted termination rights.
Can You Walk Away?
Absolutely
During the option period, you can terminate for any reason — inspection results, cold feet, or simply a change of mind. You lose only the option fee.
Your Checklist
What to do during the option period
Schedule a Home Inspection
This is your top priority. Book a licensed home inspector as soon as the option period begins — in El Paso, popular inspectors can be booked out 3 to 5 days. The inspection covers foundation, roof, electrical, plumbing, HVAC, and major systems. Cost: $350 to $550.
Order Specialized Inspections
Based on the general inspection, you may need specialized inspections for termites ($75 to $125), foundation ($250 to $400 for an engineer report), or sewer lines ($150 to $300). In El Paso, foundation and roof inspections are especially common due to expansive soils and hail damage.
Review the Seller's Disclosure
Compare the TREC Seller's Disclosure Notice against the inspection findings. Are there discrepancies? Did the seller disclose known issues? Any gaps may strengthen your negotiating position for repairs or price reductions.
Get Insurance & Appraisal Quotes
Use this time to shop homeowner's insurance quotes and confirm your lender has ordered the appraisal. In El Paso, insurance rates vary significantly based on the home's age, roof condition, and proximity to flood zones.
Negotiate Repairs or Credits
Armed with inspection results, you can request the seller to make repairs, reduce the price, or provide a closing cost credit. Your broker will advise which approach is strongest for your specific situation. The seller can accept, counter, or decline.
Make Your Decision Before the Deadline
The option period has a hard deadline — usually 5:00 PM on the last day. If you want to terminate, written notice must be delivered before the deadline expires. After that, your earnest money is at risk if you back out without a valid contingency.
Buyer Protection
How the option period protects you
Unrestricted Termination Right
Unlike contingency-based contracts in other states, the Texas option period lets you walk away for any reason — not just failed inspections or financing issues. You have full control during this window.
Limited Financial Exposure
Your only risk during the option period is the option fee ($100 to $500). Your earnest money deposit — typically $2,500 to $5,000 — remains fully protected and refundable if you terminate on time.
Negotiation Leverage
The option period is your strongest negotiating window. Inspection findings give you hard data to request repairs, price reductions, or credits. The seller knows you can walk away, which motivates them to negotiate fairly.
FAQ
Option period questions
What happens if I do not terminate during the option period?
Once the option period expires, you are contractually committed to the purchase. You can still terminate under specific contingencies (like a financing denial or title defect), but you cannot walk away simply because you changed your mind. Your earnest money would be at risk if you breach the contract after the option period.
Can the seller accept another offer during my option period?
The seller cannot accept another offer while your contract is active. However, they can accept backup offers that would take effect only if your contract terminates. This is common in competitive El Paso neighborhoods.
Is the option fee negotiable?
Yes. The option fee amount is negotiated between buyer and seller as part of the contract. In El Paso, $100 to $500 is typical. In competitive situations, a higher option fee can strengthen your offer because it signals commitment. The fee is credited toward the purchase price at closing.
How does ProGen help during the option period?
Your ProGen broker coordinates inspections, reviews reports with you, advises on repair negotiations, and ensures all deadlines are met. Josue R. Jimenez personally manages the option period timeline so nothing falls through the cracks.
Buy Smarter
Navigate every deadline with confidence.
ProGen Real Estate manages your option period timeline, coordinates inspections, and negotiates repairs — so nothing falls through the cracks.
Get Started TodayProGen Real Estate — Josue R. Jimenez, Licensed Texas Broker — TREC #619091 — (915) 691-1082