This post is about the Texas “option fee clause” in the standard Texas “1 to 4 family residential contract” and what this clause has to do with home inspections. I have lived in four states and each state has handled the home inspection process in a different manner. In Texas all residential contracts have an “option fee” clause. This clause allows buyers and sellers to negotiate a specified time during which the buyer can fully evaluate the house. For this right, they buyer pays the seller a nonrefundable “option fee”.
So let’s say you have finished negotiations everything is signed and you are under contract. If you chose to have an option period you are now going to be in your option period. (Personally I think everyone should take this right). Everything is negotiable but usually you will have put $50 to $100 down for a 5 to 10 day option period. This period gives you the time to do your home inspections and if you get cold feet this option also gives you the right to back out at anytime during that option period and 
all you lose is your option check and any money you may have paid on inspections.
When doing inspections time is of the essence. You will need to quickly find an inspector to inspect the home. If you would like more information about finding an inspector and what to ask check out my post on “What to ask your home inspector”.
The primary purpose of the inspection is to educate you so you can make an informed purchasing decision. If you are buying a re-sale home I can almost guarantee you that the inspector will find something; that is what you are paying them for. The big ticket items you will want to keep in mind are the foundation, the heat/air and the roof; almost everything else is small stuff. Should you find something that needs to be repaired during the inspections you can either ask for repairs or negotiate an agreed upon price so that you can do the repairs yourselves.
If the repairs are more than what you want to do, or maybe you just got cold feet, remember because of that Texas “option fee clause” you can back out for any reason during this option period. As I said earlier the only money you will lose is the money you put down for the option and the cost of your inspections. The earnest money will be returned to you in full as long as you provide the owner a termination letter in the agreed upon days. Again time is of the essence!
For all your Spring TX Real Estate needs, contact me today!
Marchel Peterson
Results Realty
Cell: 832-721-8332
