01
Which costs matter beyond the offer price?
Your financing and deposits affect how much cash you need before closing. Negotiated contributions and buyer-broker compensation affect the final amount. The contract also allocates title and survey costs. Check HOA charges and other expenses before you choose your terms.
- Compare the complete offer with your cash budget. The price alone leaves out costs you may need to pay sooner.
- Use the current forms to state any compensation or seller-contribution request. Confirm the accepted amount in writing.
- Save delivery receipts for money and notices. Keep the matching deadlines with your executed contract.
02
What is the option period?
Paragraph 5 of TREC 20-19 provides a negotiated window for your unrestricted termination right. You negotiate the number of days and the option fee. Deliver the stated fee as the contract requires to obtain that right.
- Pay the initial option fee and earnest money to the escrow agent within 3 days after the effective date. That delivery rule extends a final day that falls on a weekend or specified legal holiday.
- The termination notice follows a different clock: 5:00 p.m. local time at the property on the negotiated final day. The extension for delivering money does not apply to that notice deadline.
- If you terminate on time under the option provision, earnest money is refundable and the option fee is nonrefundable. If you close, the option fee is credited to the sales price.
03
When can I get my earnest money back?
Earnest money is your negotiated deposit held by the escrow agent. It is separate from the option fee. Your right to a refund depends on the signed termination or default terms and what happened in the transaction.
- Other valid termination rights can remain after your option right ends. Review the contract and addenda with your agent before acting.
- A missed deadline or default still requires the contract's remedy and release process. Any dispute over the escrowed money must be handled under those terms.
- Keep proof of payment and required notices. For an inspection problem, check the applicable termination right and its deadline before relying on a refund.
04
How do the option dates work in an example?
Suppose your $500,000 contract becomes effective on Tuesday, September 8, 2026. It calls for $5,000 earnest money and a $300 option fee. You negotiate a 7-day option. These are sample terms for explaining the calendar, not recommended amounts.
- With that unchanged calendar, the initial funds are due Friday, September 11. The option termination notice is due Tuesday, September 15 at 5:00 p.m. local time at the property.
- If you terminate on time under the option provision, the $5,000 earnest money is refundable. The $300 option fee remains nonrefundable under that provision.
- If you close, reconcile both payments on the closing statement. Calculate dates from your own signed contract and amendments before making a payment or sending notice.
05
Which deadlines do I put on my calendar?
Track the option period separately from financing and appraisal deadlines. Add the dates for reviewing title and HOA documents. Record disclosure and inspection requirements as well. The closing date is one milestone among several that protect different contract rights.
- Use the final executed contract and every amendment for your calendar. Check it again when a date changes.
- An inspection finding needs an applicable contract right before it supports termination. Ask which provision and deadline apply to your concern.
- Get an insurance quote early enough to act. Coverage availability can affect both your financing and your decision to proceed.
06
Which form fits the property I want to buy?
Choose the contract for the property type. TREC has separate forms for resale homes and condominiums. It also distinguishes completed from incomplete new construction. Farm or ranch purchases and unimproved property use different forms.
- Confirm the property type with your agent before preparing your offer. Check whether the work on a new home is complete.
- Use the current effective form and the addenda needed for your purchase. Read them together before signing.
- Keep the form number, version and effective date in your transaction file. Refer to that copy when checking a deadline.