You found a place in Montrose that checks your boxes, but the clock starts ticking the moment your offer is accepted. That short window to inspect, negotiate, and decide is called the Texas option period. It can make or break your deal, especially in a competitive inner‑loop market.
If you are buying in Montrose or nearby neighborhoods, you want to know how this period works, what it costs, and how to use it well. In this guide, you will learn the essentials, local inspection priorities, and practical timelines that help you move with confidence. Let’s dive in.
What the option period is
The option period is a negotiated, limited time after contract execution when you have an unrestricted right to terminate for any reason. You purchase this right by paying a non‑refundable option fee to the seller.
This right is created by the contract. It is not mandated by state statute. The length of the option period and the fee amount are terms you and the seller agree to in writing.
The option fee is different from earnest money. Earnest money is typically held by the title company as part of the contract’s performance assurances. If you terminate during the option period, the seller usually keeps the option fee and your earnest money is handled per the contract.
If you give proper written notice to terminate before the option deadline, the contract ends and both sides are generally released from further obligations that do not survive termination. Written notice and timing matter.
Timelines, fees, and deadlines
Option periods are counted in calendar days from the contract’s effective date. Your contract will state the exact expiration time, often 5:00 p.m. local time on the last day.
- Typical lengths in Texas range from 5 to 10 days. In Houston’s inner loop, especially Montrose, multiple offers can push option periods shorter, often 1 to 3 days, and sometimes waived.
- Option fee ranges vary. You will commonly see 100 to 300 dollars. In competitive situations or with higher‑risk properties, fees of 500 to 1,000 dollars or more can help secure your terms.
- The option fee is usually paid directly to the seller. If the sale closes, it is often credited to you at closing unless the contract says otherwise.
Coordinate your inspection schedule with loan and title deadlines. These timelines are separate, so plan ahead to avoid conflicts.
How to use the option period
The option period is your time to inspect, evaluate, and decide. In Montrose, act quickly.
Schedule inspections fast
Book your general home inspection within the first 24 to 72 hours. Inspectors can fill up quickly. In Houston, also schedule a pest or wood‑destroying insect report.
Order specialized inspections as needed: sewer scope for older homes, foundation or structural engineer if you see settlement or cracks, and targeted HVAC, electrical, or plumbing checks. Consider mold or moisture testing where conditions suggest it.
Review, price, and prioritize
Leave time to receive reports and gather contractor estimates. Focus repair requests on safety, structure, and major systems, plus items that affect insurability or lender requirements.
Older Montrose homes can have legacy wiring, aging plumbing, and add‑on renovations. Prioritize foundation, roof condition, sewer lateral health, and moisture issues.
Negotiate in writing
Submit repair requests in writing before the option deadline. You can ask for repairs, a seller credit, or a price reduction. Sellers may agree, counter, or decline. Any agreement should be finalized in a written amendment to the contract.
If you choose to terminate, deliver written notice per the contract before the deadline and keep proof of delivery. Verbal notice is not sufficient.
Montrose and Houston due diligence
Montrose has a mix of older homes, townhomes, and renovated properties. Use your option window to verify condition and future plans.
- Age and construction: Look for older electrical or plumbing, including knob‑and‑tube concerns, and past renovations that may not show permits. Schedule targeted inspections.
- Foundation and soil: Houston’s clay soils can move. If you see settlement, bring in a foundation specialist or engineer.
- Roof and weather: Check roof age and any wind or hail history. Inspect decking and flashing details.
- Drainage and flooding: Confirm FEMA flood zone and ask about past flooding. Inner‑loop streets can pond during heavy rains. Look for low spots and consider a sewer scope for older laterals.
- Termites and pests: A WDI inspection is routine and important in Houston’s climate.
- Covenants and historic rules: Montrose includes areas with deed restrictions and historic designations. Review these early if you plan future remodels.
- Insurance and lending: Some lenders and insurers require clear pest reports, functioning systems, or elevation details for certain zones. Confirm insurability and potential flood insurance needs early.
A 7‑day option checklist
Use this quick plan to stay ahead of the deadline.
- Day 0: Confirm the option deadline and delivery method for notices. Pay the option fee per the contract.
- Days 0 to 1: Schedule the general home inspection and WDI inspection immediately.
- Days 1 to 3: Order specialized inspections such as foundation, sewer scope, HVAC, electrical, or plumbing.
- Days 3 to 5: Review reports, collect contractor quotes, and align on what matters.
- Before the deadline: Submit written repair requests or deliver a written termination notice if needed.
Strategies in competitive offers
In a hot Montrose listing, you may see tight timelines.
- Shorten the option period to 24 to 48 hours if you can move fast with inspectors.
- Offer a higher option fee to support a longer or more competitive period.
- Do not waive the option lightly. You give up the unrestricted right to walk away without cause.
A balanced approach can help you win while protecting your downside.
Documentation and risk management
Deliver all notices in writing and follow the contract’s delivery instructions. Keep email threads, timestamps, and proof of receipt.
Coordinate inspection scheduling on day one. If you need an extension, negotiate it early and get it in writing. Extensions may require an additional option fee or a formal amendment.
Once the option expires, your unrestricted right to terminate is gone. New defects discovered later are handled only as allowed by the contract or law, or by mutual agreement.
Bottom line
The option period is your safety net and your leverage. In Montrose, it is also your sprint. With clear priorities, quick scheduling, and tight communication, you can protect your interests and still present a strong offer.
If you want local guidance on inspections, timelines, and negotiation strategy in Montrose and the inner loop, reach out to Kasteena Parikh. You will get a confident, concierge‑level process that keeps you decisive and protected.
FAQs
What is the Texas option period in home buying?
- It is a negotiated window after contract execution when you can terminate for any reason by giving written notice, purchased with a non‑refundable option fee.
How long is a typical option period in Montrose?
- It varies with market conditions. Competitive Montrose listings often see 1 to 3 days, while less competitive situations may allow 5 to 10 days.
What is the difference between option fee and earnest money?
- The option fee is paid to the seller and is usually non‑refundable. Earnest money is held by the title company and is handled per the contract if you terminate within the option.
When does the option period end on the last day?
- Your contract states the exact time, often 5:00 p.m. local time. You must deliver written notice before that time to preserve your right to terminate.
Can I extend the option period if I need more time?
- Yes, if the seller agrees. Extensions must be in writing and often involve an additional option fee or a formal amendment.
What if I miss the option deadline but want to cancel?
- The unrestricted right to terminate has expired. You would need the seller’s agreement or a valid contractual or legal reason to terminate.
Can the seller accept another offer during my option period?
- No. Once your contract is effective, the seller is under contract with you. They cannot accept another offer unless your contract is terminated.
Is the Texas option period like due diligence in other states?
- Yes in function. It is a short period to investigate and decide, but Texas uses a defined option fee and contract terms that are unique to this state.
