Found a home you love in Flower Mound and heard the term “option period”? You are not alone. Many buyers are unsure how this short window works or how to use it to protect their purchase. With the right plan, the option period can give you time to inspect, negotiate, and make a confident decision.
In this guide, you will learn what the option period is, how fees and deadlines work in Texas, what to focus on in Flower Mound, and smart strategies to stay competitive. You will also get a clear checklist you can follow from day one. Let’s dive in.
What the option period means in Texas
The option period is a negotiated number of days after your offer is accepted when you have an unrestricted right to terminate the contract for any reason. In exchange for that right, you pay the seller a separate, nonrefundable option fee. The Texas standard forms describe how this works and set the delivery rules for notices and payments. Review the current language in the TREC forms library and consumer explainers from Texas REALTORS.
During this window, you typically schedule inspections, review disclosures and HOA documents, seek repair estimates, and confirm insurance and title details. If you choose to terminate within the option period and follow the notice rules, your earnest money is usually refunded per the contract.
Option fee vs. earnest money
- Option fee: Paid to the seller for your termination right. It is nonrefundable.
- Earnest money: Held by the title company as security for the contract. It is refundable only if the contract allows, which often includes timely termination during the option period.
How timelines and fees work
Every deal is negotiated, but these are common Texas practices:
- Start date: The option period usually begins on the contract’s effective date. Confirm the effective date in your signed contract.
- Length: Often 3 to 10 days. In very competitive situations, buyers may offer 2 to 3 days or even consider waiving the option right. Choose based on inspection needs and market conditions.
- End time: The option expires at the time stated in the contract. Many agents treat days as calendar days unless the contract states otherwise. Always rely on the exact language in your signed agreement.
- Fees: Option fees often range from about $100 to $500, but can be higher or lower based on the deal. Earnest money commonly ranges from 1 to 3 percent of the purchase price or a negotiated fixed amount.
Important mechanics:
- Written notice is required to terminate. Deliver it per the contract’s Notice section, to the correct party or agent, and before the deadline.
- Extensions are possible by mutual written agreement, often with an additional fee.
- After the option period, you usually lose the unilateral right to terminate due to inspection findings. Other contract rights may still apply.
Flower Mound factors to check during your option
Flower Mound sits near Lewisville Lake and has a mix of established neighborhoods and newer communities. Use your option period to focus on local issues that can affect your budget, insurance, and long-term comfort.
Flood risk and insurance
- Review the property on the FEMA Flood Map Service Center and ask about any known flooding. Lenders may require flood insurance if the home is in certain zones.
- Confirm available coverages and premium estimates early. For guidance, read the Texas Department of Insurance resources.
- For local floodplain and permitting information, refer to the Town of Flower Mound official site.
Soils, foundations, and drainage
- North Texas soils can be movement-prone. In older areas or where cracks or sloping are visible, consider a structural evaluation in addition to a general inspection.
- Ask your inspector to review grading and drainage, including gutters, downspouts, and lot slope.
HOAs and neighborhood rules
- Many Flower Mound homes are in HOAs. Review CC&Rs, bylaws, rules, fees, and any pending assessments during the option period.
- Ask for clarity on architectural controls, exterior changes, and ongoing maintenance requirements.
Utilities and systems
- Confirm if the home is on municipal water and sewer or if it has a private well or septic. If septic or well is present, schedule inspections and water quality tests during the option period.
- Wood-destroying insect inspections are common. Identify who pays for treatment and any related repairs during negotiations.
Title, records, and closing process in Denton County
- Earnest money is typically deposited with the title company that will close the transaction. The title company will also handle recording with the Denton County Clerk after closing.
- For public records and recording information, see the Denton County Clerk.
Smart negotiation moves in this market
Your option strategy should match both your risk tolerance and the level of competition.
- Standard option: A typical 5 to 10 days with a modest fee. Good when inspections are a priority and competition is moderate.
- Shortened option: Offer 2 to 3 days to stay competitive while keeping some protection. Line up inspectors in advance.
- Higher option fee: Keep a longer window but sweeten the deal for the seller with a higher fee. This can help your offer stand out.
- Waive the option: Very competitive, very risky. If you consider this, ask for a pre-inspection if allowed, use a fast inspector, and rely on appraisal or financing protections where your contract allows. For current competitiveness in DFW, review MetroTex market reports.
- Request credits instead of repairs: Some sellers prefer a credit at closing rather than managing repairs. This can keep timelines clean.
You can also combine sweeteners. For example, keep a normal option but increase earnest money, pay a higher option fee, or offer a flexible closing timeline.
Your day-by-day option checklist
Use this timeline to stay on track. Adjust the pace to match your negotiated deadline.
Day 0 to Day 1
- Confirm the effective date and exact option deadline with your agent. Put the date and time on your calendar with reminders.
- Deliver the option fee as the contract requires and get a receipt.
- Confirm where earnest money is held and that the title company acknowledges receipt.
Day 1 to Day 2
- Book a licensed general home inspector immediately. Aim for an appointment within 24 to 48 hours.
- Based on the home, add specialty inspections: roof, foundation, HVAC, plumbing, electrical, sewer scope, mold, or pool.
- If the property has a septic system or well, schedule the appropriate inspections and tests.
Day 2 to Day 3
- Request HOA documents, CC&Rs, rules, and any fee or assessment details. Review for any restrictions that affect your plans.
- Review initial title information from the title company and confirm any exceptions you do not understand.
- Review or order a survey if needed and verify boundaries and easements.
Day 3 to Day 5
- Gather contractor estimates for any significant issues or upgrades you want to negotiate.
- Price homeowner and flood insurance based on inspection findings and location.
- Prioritize your repair or credit requests with your agent. Put requests in writing and deliver them per the contract.
Decision point before the deadline
- If issues are unacceptable, deliver a written termination notice before the option expires, using the method and recipient listed in the contract. Keep confirmation of delivery.
- If you are proceeding, continue negotiations for repairs or credits. If there is no agreement, decide if you will still move forward before your option window closes.
Common mistakes to avoid
- Missing the deadline: Late means you likely lose your unrestricted termination right. Treat the deadline as firm and time-specific.
- Not following notice rules: Deliver all notices as the contract requires. Email, address, and recipient details matter.
- Delaying inspections: Slots fill up fast. Schedule within the first day when possible.
- Relying on verbal promises: Put all agreements in writing and through the proper forms.
- Ignoring title and survey items: Exceptions, easements, and boundary issues can be costly if missed.
After the option period
If you do not terminate, you usually cannot exit for inspection reasons alone. Keep your loan process, appraisal, title cure items, and any agreed repairs moving. Make sure you and your agent track all remaining deadlines, including loan approvals and closing deliverables.
Work with a local advocate
A well-run option period takes planning, speed, and calm negotiation. If you want a team that knows Flower Mound’s neighborhoods, understands Denton County processes, and can guide you through inspections, title, and repairs with confidence, connect with Absolute Realty. Schedule a Meeting and we will help you make a smart, protected decision.
FAQs
Is the option fee refundable in Texas real estate?
- No. The option fee is nonrefundable and paid to secure your unrestricted right to terminate during the option period.
How long should my option period be as a Flower Mound buyer?
- It depends on inspection needs and how competitive the listing is. Many buyers choose 3 to 10 days, while very competitive situations may call for 2 to 3 days or a waiver.
Can a seller refuse repair requests after inspections?
- Yes. Sellers are not obligated to make repairs. You can negotiate credits, price changes, or repairs, or you can terminate within the option window if you are not satisfied.
What happens if I miss the option deadline?
- You usually lose the unrestricted right to terminate. You remain obligated to close unless another contract provision allows termination or the seller agrees.
How do I find qualified inspectors for my option period?
- Ask for references and check professional organizations such as ASHI or InterNACHI. Book quickly so you have time to respond before the deadline.
