Buying a home in Mansfield moves fast, and the Texas “option period” is your built-in safety net. Used well, it gives you time to inspect, negotiate, and walk away if needed without risking your earnest money. If you are relocating or buying in a competitive Tarrant County market, understanding this window can save you stress, time, and money.
Below, you will learn exactly what the option period is, how the timeline works, what to do on day one, how money flows, and which Mansfield-specific issues to check. You will also get a simple checklist and answers to the most common questions. Let’s dive in.
Texas option period basics
The option period is a short, negotiated window after your contract is fully executed that gives you an unrestricted right to terminate for any reason. This right exists only if it is included in the contract and you pay the option fee as agreed. It is a contractual right, not an automatic state law.
In most resale deals, you will use the TREC One-to-Four Family Residential Contract. The option period is created and governed by that contract and general contract law. To learn more about Texas contracts and consumer forms, visit the Texas Real Estate Commission.
Here is how the option fee and earnest money differ:
- Option fee: A small, nonrefundable payment to the seller for the unrestricted termination right during the option period. It is usually paid directly to the seller as the contract directs.
- Earnest money: A separate good-faith deposit held by the title company or escrow agent. If you terminate properly during the option period, earnest money is typically refunded based on the contract terms.
Typical ranges and timing can vary by market conditions. Many Texas buyers see 5 to 10 calendar days for the length of the option period, with option fees often in the $100 to $500 range. In hotter markets, sellers may expect shorter option periods or higher option fees. Always confirm what is customary in Mansfield at the time you write your offer.
Counting days is critical. Most contracts count calendar days and set a clear deadline hour, often midnight on the final day. Always follow the specific contract language for timing.
Timeline and buyer action plan
Your option period clock starts the moment all parties sign and the contract is executed. Because the window is short, move quickly.
Right after acceptance
- Pay the option fee and deliver earnest money immediately as your contract requires. Confirm receipt with the seller’s agent and title company.
- Schedule your general home inspection within 24 to 48 hours. Good inspectors book up fast.
- Line up any specialist inspections your general inspector recommends. Time is your biggest risk.
Inspections to consider
- General home inspection by a licensed inspector: structure, roof, HVAC, plumbing, electrical, appliances.
- Specialists as needed: WDI/termite, roof, HVAC, foundation, sewer scope, pool and spa, chimney, mold, or radon if indicated.
- Title and survey review: Ask the title company for the title commitment. Review for easements, restrictions, or liens. Confirm any existing survey covers current improvements.
- HOA review: If the home is in an HOA, request the resale package and read the CC&Rs and fee schedule.
- Seller disclosures and records: Read seller disclosures and any available repair or permit documentation. For added diligence, you can check City of Mansfield permits and Tarrant County property records.
- Lender and appraisal: Keep your financing on track. The appraisal and loan approval process often overlaps with the option period but does not replace it.
Pricing out repairs
If inspections reveal concerns, ask contractors for ballpark estimates quickly. You will need those figures to decide whether to request repairs, seek a credit, accept as-is, or terminate before your deadline.
Keep everything in writing
All requests, notices, and termination must be in writing and delivered the way your contract requires. Keep proof of delivery and timestamps.
Money, termination, and repairs
The option period lets you terminate for any reason, but you must deliver written notice before the deadline. If you terminate properly within the option period, your earnest money is typically refunded, and the seller keeps the option fee.
Negotiating repairs or credits
If you want to keep the deal but address issues, submit a written repair request or amendment with supporting estimates. The seller can accept, partially accept, offer a credit, or decline. Any agreement must be captured in a signed amendment. If you cannot reach terms and you do not want to proceed as-is, you must terminate before the option period expires.
Who pays for what
- You pay for your inspections and specialist reports.
- The seller only pays for repairs or credits that the seller agrees to in writing.
- The option fee is typically nonrefundable. It compensates the seller for giving you the unrestricted termination right.
- Earnest money is usually returned to you with a timely, proper termination during the option period. If termination happens for a different reason or there is a default after the option period, disputes can arise that may need title company or legal help.
Risks of shortening or waiving
Shortening or waiving the option period can make your offer more competitive but increases your risk. With less time, you may miss problems or feel pressured to accept costly issues. Know your risk tolerance and budget for potential post-closing repairs if you shorten or waive the option period.
Mansfield and Tarrant County insights
Local practices can vary by neighborhood and season. In some Mansfield areas and price ranges, sellers may lean toward shorter option periods or higher option fees, especially when listings are in high demand. In a more balanced market, longer option periods are more common. Ask your agent for current local norms before you write your offer.
When you schedule inspections around Mansfield, pay close attention to these common issues:
- Foundation and soil movement: North Texas soils can be expansive. Look for cracks, doors that stick, and sloping floors. If the general inspector flags concerns, consider a foundation specialist.
- Drainage and grading: Poor grading can lead to pooling water and slab issues. Ensure gutters, downspouts, and lot drainage move water away from the home.
- Roof and hail damage: Hailstorms are part of North Texas weather. If the roof is older or shows wear, ask for a roofer’s evaluation.
- Termites and wood-destroying insects: A WDI inspection is standard in Texas.
- HVAC performance: High summer temperatures make HVAC health and age a budget priority. Ask for maintenance records when available.
- Pools and spas: If a home has a pool, inspect equipment, surfaces, and safety features like fencing.
- Sewer or septic: Many neighborhoods are on municipal sewer, but verify. If septic is present, schedule a septic inspection.
- Permits and add-ons: Verify permits for additions, decks, or other improvements. Some owners may have completed work without permits. Your title review and city records can help confirm status.
Buyer checklist for your option period
- Confirm delivery and receipt of your option fee and earnest money per the contract.
- Book a general home inspection within 24 to 48 hours of acceptance.
- Order needed specialists: WDI, roof, foundation, sewer scope, HVAC, pool, chimney, mold.
- Review seller disclosures and available records for repairs and permits.
- If applicable, request the HOA resale package and review the CC&Rs and fees.
- Review the title commitment and any survey for easements, restrictions, liens, and boundary issues.
- Get written repair estimates for major items.
- Decide on your strategy: request repairs, ask for a credit, accept as-is, or terminate.
- If terminating, deliver written notice before the deadline and keep proof of delivery.
Common mistakes to avoid
- Waiting to order inspections. Schedules fill quickly and time runs out fast.
- Relying only on seller disclosures. Always perform independent inspections.
- Using verbal requests. Put all repair requests and notices in writing with timestamps.
- Assuming all issues will be fixed. Sellers can decline or offer credits, so get agreements in writing.
- Missing the deadline. The option period is firm. Late notices can put your earnest money at risk.
- Not tracking money flows. Know exactly where your option fee and earnest money go and under what conditions they are released.
Bringing it all together
The option period is your time to verify the home, the title, and the neighborhood details that matter to you. In Mansfield, taking a disciplined approach during this window helps you make a confident decision and protects your earnest money if the home is not the right fit. Move quickly, document everything, and lean on your local experts for current norms and contractor referrals.
If you want clear guidance tailored to Mansfield and nearby suburbs, book a brief consult and get a step-by-step plan for your timeline, inspections, and negotiations. Connect with Unknown Company to get started.
FAQs
What is the Texas option period in home buying?
- It is a negotiated window after a contract is executed that lets you terminate for any reason if you paid the option fee and give written notice before the deadline.
How are option fee and earnest money different?
- The option fee is a small, usually nonrefundable payment to the seller for your termination right. Earnest money is a separate deposit held in escrow that is typically refunded if you terminate properly during the option period.
How long is a typical option period in Mansfield?
- Many Texas deals use 5 to 10 calendar days, but local conditions vary. In competitive situations, sellers may expect shorter periods or higher option fees.
What happens if I terminate during the option period?
- If your notice is timely and delivered per the contract, the contract ends, the seller usually keeps the option fee, and your earnest money is typically refunded per contract terms.
Can I negotiate repairs instead of terminating?
- Yes. Submit a written repair request or amendment with estimates. The seller can accept, counter, or decline. Any agreement must be signed in writing.
Can I extend my option period if I need more time?
- Often yes, if both parties agree in writing. Extensions typically require an additional option fee or other consideration.
What if a major issue is discovered after the option period ends?
- Your unrestricted right to terminate has likely expired. You can still try to negotiate, but your leverage and protections are reduced unless another contract contingency applies.
Who pays for inspections during the option period?
- You pay for inspections and specialist reports. The seller only pays for repairs or credits that the seller agrees to in writing.
Is the option period the same as an inspection contingency?
- In practice, the Texas option period provides a broad right to terminate and is used for inspection decisions. It functions like a strong inspection contingency, but it is a contract-created right.
