What Is the Option Period in Texas? A Denton County Buyer Guide

The option period in Texas is a short window, usually a week or so, that starts the day your purchase contract is signed. During it, you can back out of the deal for any reason and get your earnest money back. You pay the seller a small option fee for that right. You won't get that fee back, but if you close, it counts toward your price. For most Denton County buyers, the option fee is some of the best money they spend on the whole purchase.

Here is how the option period works, what to do with those days, and the one deadline you can't miss.

What is the option period in Texas?

Most Texas resale homes are bought on the standard contract from the Texas Real Estate Commission (TREC). In Paragraph 5 of that contract, the seller gives the buyer "the unrestricted right to terminate" for a set number of days after the effective date (the date the last party signs). That window is the option period.

"Unrestricted" is the key word. You don't need a reason. A bad inspection, a surprise insurance quote, or just a change of heart all count. Only the buyer gets this right. The seller can't use it to walk away.

The number of days is negotiated with each offer. In our experience it is often around 5 to 10 days, but it can be shorter in a competitive situation or longer for a home with a pool, acreage or an older foundation.

Option fee vs. earnest money

These two get mixed up all the time. Here is the difference:

• Option fee: Paid for the right to terminate. It is not refunded if you walk away. If you close, it is credited to the sales price.
• Earnest money: Your good-faith deposit, held by the title company (the escrow agent). If you terminate in time during the option period, it comes back to you.

Under the current contract, both are due to the escrow agent within 3 days after the effective date. They can be one check or two, but if one combined payment comes up short, it is applied to the option fee first. Miss the option fee deadline and you lose the right to terminate under Paragraph 5. That is why we help clients get both delivered to the title company right away.

There is no set amount for the option fee. It shouldn't be a token amount, and it usually reflects the price of the home, the number of days and how much interest the house has. We talk that through with you before every offer.

The 5:00 p.m. deadline (and how to count the days)

This is where buyers get burned. A few rules from the contract and the Texas Real Estate Research Center:

• Days are calendar days, not business days. Weekends count.
• The effective date is day zero. Day one is the next day.
• Notice is due by 5:00 p.m. local time on the last day. 5:01 p.m. is too late.
• The termination notice must be in writing and delivered to the seller as the contract requires.

Example: if your contract is effective on Monday, November 2, with a 7-day option period, day 7 is Monday, November 9. Your written notice has to be delivered by 5:00 p.m. that day. The option fee and earnest money would be due by Thursday, November 5.

Need more time? You can't simply stretch the existing period. You negotiate a new option period with the seller, usually with an extra fee paid directly to the seller, through a TREC amendment.

What to do during your option period

Treat these days like a to-do list. Book everything the day your contract is signed.

1. General home inspection. Use a TREC-licensed inspector. You can check any license with TREC's License Holder Lookup.
2. Specialty checks as needed. A sewer line scope, a foundation evaluation, a roof or pool inspection, or a termite inspection if the general inspector flags something.
3. Get insurance quotes. Roof age and past claims can move your premium a lot in North Texas. The Texas Department of Insurance suggests comparing several companies, including through HelpInsure.com.
4. Read the HOA documents and the seller's disclosure. Look at dues, rules and any upcoming special assessments.
5. Check the tax picture. Find out if the home sits in a MUD or PID. We explain how in our guide to MUD and PID taxes in Denton County.
6. Decide and negotiate. Ask for repairs, a credit at closing or a lower price with a TREC amendment, or terminate. The seller doesn't have to agree to anything, so leave time to respond before 5:00 p.m. on the last day.

Is the option fee worth it?

Almost always, yes. For a relatively small fee, you protect an earnest money deposit that is often several thousand dollars, and you buy time to find out what you are really buying. Without an option period, backing out after a bad inspection can put your earnest money at risk.

The rare exception is a buyer who has already inspected the home or is buying it purely as-is with eyes open. Even then, we'd want to talk it through first. And remember, the fee is credited back at closing, so if all goes well it isn't an added cost.

What this looks like in Corinth and Oakmont

As of October 25, 2026, there were about 137 single-family homes for sale in Corinth on our site, averaging close to $500,000 and roughly 2,600 square feet. That mix runs from homes built in the late 1970s to brand-new 2026 construction, and the inspection plan should match the house.

• Older homes near Lake Dallas and in established Corinth neighborhoods: plan for a foundation look, a sewer scope and a close look at the roof, electrical panel and water heater.
• Homes in Oakmont Country Club Estates: some homes have mature trees, pools or golf course lots, so a pool inspection and a check on drainage and tree roots are worth the time. Review the POA documents during the option period, too.
• New construction in Denton County: builders often use their own contract, and it may not include an option period the same way. Read it before you sign, and still consider a TREC-licensed inspector.

Want to see what is for sale now? Search Corinth homes for sale or check the Corinth market report.

Frequently asked questions

Is the option fee refundable in Texas?

No. The option fee goes to the seller and is not refunded if you terminate. If you buy the home, it is credited to the sales price at closing.

Do I get my earnest money back if I cancel during the option period?

Yes, if your written termination notice is delivered by 5:00 p.m. local time on the last day of the option period and the option fee was paid on time. The earnest money is refunded to you.

How long is the option period in Texas?

There is no set length. It is negotiated in each contract. In our experience it is often around 5 to 10 calendar days, counted from the day after the effective date.

Can the seller back out during the option period?

No. The option period gives only the buyer the right to terminate for any reason. The seller is bound by the contract.

This post explains how the option period generally works under the TREC resale contract (form 20-18). It is not legal advice. For questions about your specific contract, talk with a real estate attorney. Sources: TREC One to Four Family Residential Contract (Resale); Texas Real Estate Research Center, Option Period Basics; TREC consumer information; Texas Department of Insurance home insurance shopping guide. Market figures from MLS listings on our site, October 25, 2026.

Photo credits: top photo by RDNE Stock project and inspection photo by Kathleen Austin Kuhn, both via Pexels; calendar illustration created for the Airheart Realty Team.