You found the right home in Friendswood and got your offer accepted. Now the clock starts. The option period is your built-in time to investigate the property, negotiate repairs, and decide with confidence. When you know how it works and what to prioritize locally, you protect your earnest money and your peace of mind.
In this guide, you’ll learn what the Texas option period is, how fees and deadlines work, and which inspections matter most in Friendswood. You’ll also get a simple timeline, a checklist, and clear answers to common questions. Let’s dive in.
Option period basics
In Texas, the option period is a short, negotiated window that gives you the unrestricted right to terminate your contract for any reason. It is created by the option paragraph in the TREC One-to-Four Family Residential Contract. You pay a separate option fee to secure this right.
The contract language controls the timing and mechanics. The option period starts on the effective date and ends on the deadline written in the contract. During this window, you can inspect, review documents, and either move forward, negotiate repairs, or terminate.
To see the source contract, review the official TREC One-to-Four Family Residential Contract.
How timing, fees, and deadlines work
- Option fee vs. earnest money:
- Option fee: Paid to the seller for your right to terminate during the option period. It is typically nonrefundable, though it can be credited at closing if both parties agree in writing.
- Earnest money: Held by the title company and separate from the option fee. If you terminate properly within the option period, your earnest money is typically returned per the contract.
- Typical length and cost: Many buyers negotiate 3 to 10 calendar days. Seven days is common in balanced markets. Option fees often range from about 100 to 400 dollars, though higher fees or shorter periods are sometimes used in competitive markets.
- Start and end: The option period begins on the contract’s effective date. It ends on the deadline listed in your contract. Many practitioners treat the expiration as 11:59 p.m. on the last day, but your written contract controls, so confirm the exact time.
- How to terminate: You must deliver a written termination notice to the seller or the seller’s agent before the option period expires. The official TREC Notice of Buyer’s Termination of Contract is a commonly used form.
A simple 7-day example
- Day 0: Contract is executed. Pay the option fee as written. Schedule the general home inspection immediately.
- Day 1–2: Complete the general inspection. Order any specialist inspections flagged by the home inspector.
- Day 3–4: Review reports and get repair estimates for significant items.
- Day 5–6: Submit a written repair request or prepare to terminate if issues are unacceptable.
- Day 7: If needed, deliver a signed termination before the deadline to preserve your earnest money return.
Friendswood-specific priorities
Friendswood sits in the Houston–Galveston region, which brings coastal weather, flood history, and mixed-age housing. Use your option period to focus on items that matter locally.
- Flood risk and insurance: Check a property’s flood zone using the FEMA Flood Map Service Center. If the home is in a Special Flood Hazard Area, ask for any elevation certificates and details on past mitigation work. You can also contact the City of Friendswood for floodplain information.
- Foundation and drainage: If your inspection notes cracks, doors that bind, or sloping floors, consider a structural engineer or foundation specialist.
- Roof and storm impacts: Verify roof age, condition, and any prior wind or hail claims.
- Termites and wood-destroying insects: Order a WDI inspection and request any past treatment records.
- Sewer line: Confirm whether the home is on municipal sewer. A sewer scope can uncover blockages or breaks that are not visible during a general inspection.
- Pools and site features: For homes with pools or near creeks and drainage features, add specialist inspections.
Key documents to review
During the option period, request and review:
- Seller’s Disclosure of Property Condition.
- Survey and legal description to confirm boundaries and any encroachments.
- HOA or POA documents and the resale certificate, including fees and pending assessments.
- Title commitment and any recorded easements or restrictions.
- Permits and city records for additions or major repairs. Start with the City of Friendswood to verify permit history.
- Insurance and claims history, especially for flood or wind events.
- For homes built before 1978, confirm required lead-based paint disclosures. Learn more from HUD’s lead information.
Negotiating repairs and next steps
You have three main paths during the option period:
- Proceed as is. Move forward without requesting repairs.
- Negotiate repairs or a credit. Submit a clear, written repair request with inspector reports or contractor estimates. The seller can accept, reject, or counter.
- Terminate. If you cannot reach an agreement or the issues are too significant, deliver a written termination before the option deadline. Your earnest money is typically returned under the contract when you terminate properly within the option period. The option fee is generally nonrefundable.
If lender-required repairs or appraisal issues arise, those are separate contract contingencies. Your agent can help coordinate timelines so you do not miss your option deadline while those items are evaluated.
Your option period checklist and costs
Use this quick plan to stay on track:
- Day 0
- Pay the option fee and confirm receipt per the contract.
- Schedule the general inspection within 24 to 48 hours.
- Days 1–2
- Complete the general inspection.
- Order specialist inspections as indicated: foundation, sewer scope, roof, HVAC, WDI, pool.
- Request the Seller’s Disclosure, survey, HOA packet, title commitment, and permit records.
- Days 3–5
- Review reports and collect repair estimates for major items.
- Check flood zone and consider flood insurance quotes for the property address using the FEMA Flood Map Service Center.
- Days 5–6
- Submit your repair request or prepare termination.
- Seek written responses and confirm any agreements in writing.
- Final day
- If you decide not to proceed, send the signed termination before the deadline using the TREC termination form.
Estimated costs to budget locally:
- Option fee: typically 100 to 400 dollars in balanced markets.
- General inspection: 300 to 600 dollars.
- Sewer scope: 150 to 400 dollars.
- Structural engineer: 500 to 1,500 dollars.
- Termite/WDI inspection: 75 to 150 dollars.
- Roof or drone inspection: 100 to 300 dollars.
- HOA resale packet: often 100 to 400 dollars.
Common pitfalls to avoid
- Short or waived option period: This can make your offer competitive, but it raises risk. If you shorten the window, have inspectors ready to go and schedule same-day slots.
- Miscounting the deadline: The contract counts calendar days. Confirm the exact expiration time and deliver any termination with proof of delivery.
- Assuming the seller must repair: The seller is not obligated to fix items unless both sides agree. Be specific in your requests and ready to accept a credit or walk away.
- Skipping flood and permit checks: Always review FEMA maps and local permit records in Friendswood. Unpermitted work can affect insurance and future resale.
- Mixing up fees: Keep option fee and earnest money separate in your mind and your paperwork. They serve different purposes and follow different refund rules.
Work with a concierge guide
The option period moves fast, and local details matter. You deserve a steady hand that can coordinate inspections, keep timelines tight, and negotiate with clarity. If you are buying in Friendswood or nearby Gulf Coast communities, we are here to help you make a confident decision.
Request your next steps with a white-glove experience from Living Vogue Real Estate. Request a Complimentary Concierge Consultation.
FAQs
What is the Texas option period in the TREC contract?
- It is a negotiated window that gives you the unrestricted right to terminate for any reason, created by the option paragraph in the TREC One-to-Four Family Residential Contract.
How do option fee and earnest money differ in Texas?
- The option fee is paid to the seller for the termination right and is usually nonrefundable. Earnest money is held in escrow and is typically returned if you terminate properly within the option period.
When does my option period end on a Friendswood home?
- It ends on the exact date and time written in your contract. Many treat the deadline as 11:59 p.m., but your contract controls, so confirm the time and deliver any notice before expiration.
What inspections should I prioritize in Friendswood, TX?
- Start with a general inspection, then consider foundation, roof, WDI, sewer scope, HVAC, and pool as needed. Also verify flood zone status using the FEMA map tool.
Can I get my earnest money back if I terminate during the option period?
- Yes, if you deliver written termination before the option deadline per the contract, your earnest money is typically returned. The option fee is generally not refunded.
Should I waive the option period to win a Friendswood home?
- Waiving increases risk. You can stay competitive by shortening the period or offering a higher option fee instead of fully waiving, but only if your inspection plan can keep pace.
Where can I verify city permits or floodplain info in Friendswood?
- Start with the City of Friendswood for permits and floodplain contacts, and use the FEMA Flood Map Service Center for flood zones.
What lead-based paint rules apply to older Friendswood homes?
- For homes built before 1978, federal law requires lead-based paint disclosures. You can learn more from HUD’s lead program.
