Did you know?
Did you know the standard contract for buying a home in Texas contains a clause for an Option Period?
The Option Period is the time during which the buyer can cancel the contract for any reason, without penalties. A buyer pays for the option period, usually a small amount of $100 and for a standard of 10 days. During this 10 days, the buyer can run inspections and negotiate any repairs with the seller. If an agreement cannot be made, the buyer can back out of the contract with only losing the $100. If the buyer does purchase the property, the $100 is credited to them at closing.
One thing that many realtors, buyers and sellers often question is when the option period starts. A contract is executed and binding when both parties agree and have both signed the contract. This is considered the executed date which is written into the contract above the sellers and buyers signatures. The option period starts the next day.
Example: If a buyer and seller agree and sign on November 20, 2013, the option period would start on November 21, 2013 and end at midnight on November 30, 2013.
An option period is the best money a buyer can spend when purchasing a home!