Buying a home in Montgomery or Conroe moves fast. Once your offer is accepted, you have a short window to investigate the property and decide if it is the right fit. That window is the Texas option period, and using it well can save you money and stress. In this guide, you will learn what the option period is, how it works in Texas contracts, local norms in the Conroe area, a simple 7-day plan, and smart negotiation tips to protect your purchase. Let’s dive in.
Texas option period, defined
The option period is a negotiated number of days in a Texas contract when you can terminate for any reason in exchange for paying an option fee to the seller. If you end the contract during this period, your earnest money is typically returned per the contract. The option fee is usually nonrefundable unless your contract says it will be credited at closing.
This right is built into the standard Texas contract forms. You will see option fee and option days filled in on the TREC One-to-Four Family Residential Contract. You can review official forms and consumer materials on the Texas Real Estate Commission forms page.
How it differs from other protections:
- Option right vs. financing contingency: The option lets you walk away for any reason within the deadline. A financing contingency is limited to loan-related issues.
- Option fee vs. earnest money: The option fee buys your right to terminate during the option period and is paid per the contract. Earnest money is held in escrow as contract consideration.
How the option period works
- Effective date and counting days: The option period begins on the effective date in your contract. Count days exactly as the form requires, and deliver any notice before the deadline stated in the contract.
- Paying the option fee: The contract specifies who receives the fee and whether it will be credited at closing. Get a written receipt and keep it with your records.
- Termination and notices: If you choose to terminate during the option period, send the required notice using the delivery methods allowed in the contract. Agents commonly use the TREC termination notice for this purpose.
- After the option ends: Your unilateral option right expires. You may still have other remedies under contract provisions, but you lose the ability to walk away for any reason.
For official language, visit TREC’s consumer and forms resources.
Conroe market norms to expect
Local customs vary by neighborhood and price point, but these are common in Montgomery and Conroe:
- Typical option length: About 3 to 10 days. In multiple-offer situations, buyers sometimes offer 3 days or less. For older or higher-risk properties, 7 to 10 days is more common.
- Typical option fee: Often $100 to $300 in the Conroe area, though fees can be higher on competitive listings or larger properties.
- Market pressure: In tight inventory, sellers favor shorter option periods and higher option fees. In slower markets, buyers can negotiate more time and still keep fees modest.
Common local inspection priorities:
- Flooding and drainage: Proximity to Lake Conroe and area creeks makes flood due diligence essential. Check FEMA maps using the FEMA Flood Map Service Center, review seller disclosures, and consult Montgomery County resources at the county’s official site.
- Foundation and soil movement: Expansive clays can lead to slab movement. Consider a structural engineer if your inspector flags concerns.
- Termites and WDI: Termite inspections are routine in southeast Texas.
- HVAC and moisture: Humidity can stress systems. Pay attention to age, service history, and any moisture-related issues.
- Septic and sewer: In rural or older areas, scope sewer lines and order a septic inspection when applicable.
- HOA and deed restrictions: Many Conroe subdivisions have HOAs. Request documents early and review budgets, rules, and any pending assessments.
For local market context and consumer guidance, the Houston Association of REALTORS and Texas REALTORS offer helpful resources.
7-day option timeline
Use this as a model. Adjust to match your contract.
Day 0: Effective date
- Verify option length and fee in writing.
- Pay the option fee and keep a receipt.
- Schedule the general home inspection immediately.
- Line up specialty inspections if needed: WDI, foundation, roof, HVAC, sewer scope, septic.
- Request HOA documents and review the seller’s disclosure.
Days 1–4: Inspect and research
- Complete inspections as scheduled and review reports.
- Get estimates for major items like foundation, roof, or HVAC.
- Check the property’s flood zone on FEMA’s site and study county resources at mctx.org.
- Order the title commitment and consider ordering a survey if time allows.
Days 5–6: Decide and negotiate
- Draft repair requests or a price-credit proposal based on findings.
- Negotiate with the seller. Many sellers prefer credits over repairs.
Day 7: Deadline day
- Deliver any termination or signed amendment before the deadline and in the manner required by the contract.
- If you do not deliver a termination notice, the option right expires.
Buyer checklist
- Confirm option days and fee on the contract.
- Pay the option fee and keep proof.
- Schedule general and specialty inspections right away.
- Review seller disclosures, HOA documents, and flood information.
- Get repair estimates for major systems.
- Send any termination or repair requests before the deadline.
- Confirm with your lender if any repairs are loan requirements.
- Ask your agent to clarify where earnest money and the option fee are held.
Negotiation strategies
- Shorter option to compete: In multiple offers, a 3-day option can strengthen your position. Only do this if your inspectors can meet the timeline.
- Longer option for risk: For properties with older systems, flood history, or suspected foundation issues, request 7 to 10 days or more.
- Higher fee for more time: Offer a larger option fee to secure extra days when sellers resist longer timelines.
- Credit vs. repairs: Many sellers prefer a closing credit instead of repairs. Credits reduce the chance of improper work and let you choose contractors after closing.
- Escalating inspections: If your inspector flags major issues, bring in a specialist quickly and use their report to guide negotiations.
Local risks to prioritize
- Flood risk: Use FEMA maps and county resources to verify flood zones and elevation certificates where applicable. Flood insurance can affect your monthly budget.
- Foundation movement: Consider a structural engineer for visible cracking or uneven floors.
- Termite activity: Order a WDI inspection and review any treatment history.
- Septic and wells: In rural Montgomery County, confirm permits and plan for longer repair timelines if problems arise.
- HOA rules and costs: Review use restrictions and any planned assessments.
For county information and permitting resources, visit Montgomery County’s official website. For property tax and record checks, the Montgomery County Appraisal District is a key resource.
Title, survey, and HOA review
Order the title commitment early and read the exceptions carefully. If a survey is required, allow for turnaround time. In subdivisions with HOAs, request budgets, rules, and any pending assessments during the option period. If issues surface late, your agent can help you pursue amendments or negotiate credits, but aim to spot concerns before the deadline.
Pitfalls to avoid
- Missing the deadline: If you do not send a termination notice in time, your unilateral right to walk away ends.
- Delaying inspections: Inspectors can book up, especially on weekends. Schedule Day 0.
- Skipping specialty checks: In our area, sewer scopes, WDI, and foundation evaluations can reveal costly issues.
- Assuming repairs will be done: Get agreements in writing. Credits are often simpler and safer.
- Overlooking flood and HOA details: These can affect insurance costs and your intended use of the property.
When to consider waiving
Waiving the option period is risky because you give up the right to terminate for any reason. It is generally considered only when you fully understand the property’s condition and competitive pressure demands it. If you need to compete, a short option with pre-scheduled inspections can be a safer alternative than a full waiver.
Ready for local guidance?
Your option period moves quickly, but with a clear plan you can make confident decisions. If you want hands-on help scheduling inspections, reviewing HOA and flood information, and negotiating strong outcomes in Montgomery and Conroe, we are here to help. Connect with the local team at Reaves Realty Group.
FAQs
What is the Texas option period in homebuying?
- It is a negotiated number of days when you can terminate for any reason in exchange for paying an option fee, with earnest money typically returned per the contract.
How do option fees and earnest money differ?
- The option fee buys your right to terminate during the option period and is usually nonrefundable, while earnest money is escrowed as contract consideration under the agreement.
What are typical option lengths and fees in Conroe?
- Many contracts use 3 to 10 days for the option period and option fees around $100 to $300, though both are negotiable and vary by market conditions.
What happens if I miss the option deadline in Texas?
- Your unilateral right to terminate under the option ends, though you may still have rights under other contract contingencies depending on your agreement.
Can I extend the Texas option period after signing?
- Yes, but only by mutual written agreement signed by both buyer and seller before the original option deadline expires.
What inspections should I prioritize in Montgomery County?
- General inspection, WDI, foundation or structural evaluation if needed, HVAC, roof, sewer scope, and septic where applicable, plus flood research through FEMA’s map center.
Does the option period cover HOA and loan review?
- You can use the time to review HOA documents, but loan-related rights are separate and governed by the financing contingencies in your contract.
Where can I find the official Texas contract forms?
- Review current forms and consumer materials on the Texas Real Estate Commission forms page.