contracts

Option Fee and Option Period (Texas)

In the TREC resale contract, the buyer pays an option fee in exchange for the unrestricted right to terminate by notice within a set number of days after the Effective Date, the option period. Earnest money and the option fee must be delivered to the escrow agent within 3 days after the Effective Date. If the buyer terminates on time, the seller keeps the option fee and the earnest money is refunded; at closing, the fee is credited to the price.