Texas option period and inspection credits: the buyer's playbook
Texas runs a short, hot inspection period. The option fee buys you 5 to 10 days of unilateral termination rights, and any credit conversation has to happen inside that window. Move fast or lose leverage.
How the timeline runs
Day 0 is contract execution. The option period starts the next day. Most contracts default to 7 to 10 days; in competitive markets the period drops to 3 to 5 days.
Inspections in Texas should be scheduled within 48 hours of contract execution because the option period is short. Sewer scope, wind mitigation (Gulf coast), and any specialty inspections need to be lined up the day you sign.
The credit-request letter and TREC Amendment to Contract go out by day 4 to 6. The seller has 3 days to respond by default unless your contract specifies otherwise.
Option period expiration is the hard deadline. After that, terminating means losing the earnest money. Most negotiations conclude inside the option period; the option fee is non-refundable but credits against the purchase price at close.
The form and what it does
The TREC Amendment to Contract (form 39-9) is the standard vehicle for any change to the executed contract, including repair credits. It must be signed by both parties to be effective.
Brokers may complete TREC forms under direct buyer instruction (the scrivener function) but cannot provide legal interpretation. The credit-request letter sits alongside the amendment and provides the persuasive case.
Option fee handling: the buyer pays the seller the option fee at contract execution (typically $100 to $500). It is non-refundable but credits against the purchase price at close. Termination during the option period costs only the option fee, not the earnest money.
Where the buyer has leverage
The option period is unilateral termination at the buyer's discretion. The seller cannot dispute it. This is stronger leverage than most states; sellers know that a refused credit usually means a termination and a relisting.
Texas appraisers and FHA reviewers in particular flag foundation issues (common on Texas clay soils) and HVAC age. Findings in these categories that the seller refuses to credit often surface again at appraisal, forcing the conversation downstream.
In the Gulf coast counties, wind mitigation and roof age are insurance-critical. Inspection findings on those items have stronger leverage than elsewhere because insurance binding gates the closing.
If you need to walk
During the option period the buyer delivers written notice of termination to the seller (email or the TREC Notice of Termination form). The earnest money returns to the buyer; the option fee stays with the seller. Outside the option period, termination requires a contractual breach by the seller or a financing/appraisal contingency to be intact.
Questions Texas ask
How long is the Texas option period?
Typically 7 to 10 days. In hot markets like Austin or Dallas-Fort Worth it can be 3 to 5 days. The fee is usually $100 to $500. Both are negotiated in the original contract.
Is the option fee refundable?
No. The option fee is the price of unilateral termination rights. It is non-refundable but credits against the purchase price if you close. If you terminate, you lose it.
Can I extend the option period?
Yes, by mutual written agreement before the current period expires, usually with a small additional option fee. Get it in writing every time.
What is the difference between option fee and earnest money?
The option fee buys your unilateral termination rights and stays with the seller if you terminate. Earnest money sits in escrow and returns to you if you terminate during the option period or if you terminate later under another contingency (financing, appraisal).