Buying in Arlington and wondering how to protect yourself after your offer is accepted? The option period is a small clause with a big impact on your peace of mind. If you are unsure how many days you have, which inspections fit, or how option money differs from earnest money, you are not alone. In this guide, you will learn how the Texas option period works, common timelines in DFW, and simple steps to use it well. Let’s dive in.
What the option period means in Texas
In Texas, the option period is a short, negotiated window that gives you an unrestricted right to terminate your contract for any reason by sending written notice before the deadline. It is created in the standard Texas residential contract and backed by an option fee you pay for that right. During this time, you can complete inspections, negotiate repairs or credits, or decide to walk away.
If you terminate within the option period, you typically receive your earnest money back. The option fee is usually non-refundable. Because the details live in the contract, always confirm the exact days, deadlines, and delivery requirements in your signed agreement. For an overview of Texas forms and consumer guidance, visit the Texas Real Estate Commission’s resources on TREC’s website.
Option money vs. earnest money
These two payments serve different purposes.
- Option money: A negotiated fee that compensates the seller for taking the home off the market while you decide. It may be delivered to the seller or to the escrow holder per your contract. It is typically non-refundable, though it is commonly credited to you at closing.
- Typical local amount: In many Texas transactions, option fees often range from about $100 to $500, with higher amounts sometimes used in competitive situations.
- Earnest money: A separate deposit held by the title company or escrow holder that shows good faith. In Texas contracts, it is usually due shortly after the effective date, often within 1 to 3 days. If you terminate properly during the option period, your earnest money is typically refunded.
For a consumer-friendly overview of these concepts, see guidance from Texas REALTORS.
Arlington and DFW timelines
Option periods in the Fort Worth–Arlington area commonly run 3 to 10 days. In a balanced market, 5 to 7 days is typical. In multiple-offer situations, many buyers shorten the period to 3 to 5 days or, at times, waive it to stay competitive. Your exact approach should reflect the property’s condition, your inspection plan, and the speed of the market in that neighborhood.
To keep your rights intact, pay both the option fee and earnest money on time and follow the contract’s rules for delivering notices. Written notices must be delivered before the deadline to be effective.
Example 7-day plan
- Days 1–2: Schedule and complete your general inspection right away. Order any needed specialty inspections, such as roof, foundation, HVAC, sewer, or termite.
- Days 3–5: Review reports with your inspector and agent. Prioritize safety, major systems, and significant cost items.
- Day 6: Send a written repair or credit request to the seller.
- Day 7: If you cannot reach agreement and choose not to proceed, deliver written termination before the deadline stated in your contract.
Inspections during the option period
Use this time to understand the home’s true condition.
- General home inspection covering structural, electrical, plumbing, and mechanical systems.
- Pest inspection for wood-destroying insects.
- Specialty inspections as needed: roof, foundation, mold, sewer scope, HVAC, pool, and more.
- Document review: seller disclosures, survey, HOA rules, easements, and floodplain details if applicable.
Schedule promptly. Aim to complete your primary inspection within 48 to 72 hours so you have time to follow up.
How negotiations work
If inspections reveal concerns, your agent will help you prepare a written amendment requesting repairs, credits, or a price change. The seller can accept, reject, or counter. If you do not reach an agreement and decide to terminate, you must deliver written notice before the option period expires to preserve your earnest money rights. The option fee is generally kept by the seller.
After the option period ends, you no longer have an unrestricted right to terminate. Some issues can still be discussed, but the seller has less incentive to agree.
Practical checklist for Arlington buyers
Before you write the offer
- Decide on a realistic option period and fee that fit both your needs and the local market’s pace.
- Clarify in the contract where the option fee is delivered and where earnest money is held.
- Ask your agent for recent local examples of option lengths and fee ranges.
During the option period
- Schedule your general inspection immediately. Add specialists as needed.
- Review seller disclosures and any HOA or survey documents right away.
- Send all requests and notices in writing. Keep timestamps and receipt confirmations.
If you need more time
- Ask to extend the option period via a signed amendment. Be prepared to pay an additional option fee. Extensions require seller agreement.
If you terminate
- Deliver written notice before the deadline and confirm with the escrow holder that your earnest money will be released per the contract.
If you proceed to closing
- The option fee is commonly credited to you at closing based on the contract terms. Verify the credit on your closing disclosure.
Risks and tips in a competitive market
Shortening or waiving the option period can make your offer more attractive, but it increases your risk if a costly issue appears later. Balance speed with the need for proper due diligence. Use inspectors familiar with Tarrant County homes and common local issues like slab settlement, roof wear from storm events, and aging plumbing or electrical in older properties.
What the option period does and does not do
- What it does: Gives you an unrestricted right to terminate within a short, negotiated window. Lets you inspect, request repairs, and decide with confidence.
- What it does not do: It does not solve appraisal or lender underwriting issues, which follow separate timelines. After expiration, you lose the unilateral right to terminate under the option clause. Other contract and legal protections still apply per Texas law. For general contract context, review resources from TREC and consumer guidance from Texas REALTORS.
Ready for guidance tailored to Arlington?
You deserve a clear plan that protects your budget and your time. Our team helps you set the right option strategy, schedule quality inspectors fast, and negotiate with confidence in Arlington and across Tarrant County. When you are ready to talk through your goals, connect with Shannon Johnson for a friendly, expert consult.
FAQs
What is the option period in a Texas home purchase?
- It is a short, negotiated window that lets you terminate for any reason by sending written notice before the deadline, typically in exchange for an option fee.
How is option money different from earnest money?
- Option money is the fee for your termination right and is usually non-refundable, while earnest money is an escrow deposit that is generally refunded if you terminate properly within the option period.
How long is the option period in Arlington, TX?
- Many local contracts use 3 to 10 days. In balanced conditions, 5 to 7 days is common; in multiple-offer situations, 3 to 5 days or waiving the option may appear.
What inspections should I complete during the option period?
- Start with a general home inspection, then add specialty inspections as needed, such as roof, foundation, HVAC, sewer scope, termite, or pool.
What happens to my earnest money if I terminate on time?
- If you deliver written termination within the option period as the contract requires, your earnest money is typically returned to you.
Can I extend the option period if I need more time?
- Yes, but only by mutual agreement through a signed amendment, often with an additional option fee. Sellers are not required to approve an extension.
Do appraisal or loan issues fall under the option period?
- No. Appraisal and underwriting follow separate timelines. The option period covers your unrestricted termination right for inspections and due diligence.
