Buying in Collin County moves fast. When you finally get an offer accepted, the Texas “option period” is your short window to check the home, confirm the details, and decide if you want to move forward. You may feel rushed, but with a plan you can protect your budget and your peace of mind. In this guide, you’ll learn exactly how the option period works, what to do day by day, and which inspections matter most in Collin County so you can act with confidence. Let’s dive in.
What the Texas option period is
The option period is an agreed number of days after the contract takes effect when you can terminate for any reason by giving proper written notice. It is built into most Texas resale contracts using the standard TREC One- to Four-Family form. You pay an option fee to secure this right, and timelines are strict.
The purpose is simple. You use this time to complete inspections, review disclosures and records, verify permits, and decide whether to proceed, renegotiate, or walk away. If you terminate properly before the deadline, you typically receive your earnest money back per the contract.
A quick money note. The option fee is usually nonrefundable, but many contracts credit it to you at closing if you continue to purchase. The exact handling is controlled by your executed contract.
How the option period works
Effective date and timing
Your option period starts on the contract’s effective date. That is usually the date the last required signature is placed on the agreement. Most TREC deadlines count in calendar days, not business days, unless the contract says otherwise. Mark the expiration and plan backward.
Option fee basics
The option fee is consideration paid for your right to terminate. In Collin County, it is commonly $100 to $500, though sellers may request more in hot markets. The contract states how and to whom it must be delivered and by when. Follow those delivery instructions exactly.
How to terminate properly
If you decide not to proceed, send written notice of termination to the party named in your contract before the option period expires. Acceptable methods are those listed in the contract. Email, hand delivery, or other methods may be permitted if they meet the notice provisions. Keep proof of delivery with timestamps.
Earnest money vs. option rights
Your option right is separate from earnest money. If you miss the option deadline and then back out without another contract excuse, the seller may have remedies and could keep the earnest money. Track all deadlines closely, including survey, title objections, and closing.
Your 7-day option timeline
Use this sample schedule to move quickly and keep your leverage.
- Day 0 (effective date): Pay the option fee per your contract. Schedule a general inspection, termite inspection, and any likely specialty inspections immediately.
- Days 1–3: Complete the general home inspection and WDI (termite) inspection. Order specialty checks as needed, such as foundation, sewer scope, HVAC, or roof. Request HOA documents and resale certificate if applicable. Confirm permits for any additions.
- Days 3–5: Review inspection reports. If major structural issues are suspected, consult a licensed structural engineer. Begin outlining repair requests or credit options.
- Days 6–7: Finalize decisions. Deliver any repair amendment before the option period expires or send a clear termination notice in writing within the deadline.
- After option: Continue title commitment and survey review, handle remaining contract items, and prepare for appraisal and closing.
Inspections that matter in Collin County
Scheduling inspections in the first 48 to 72 hours gives you time to follow up. A general inspector is your first call, then bring in specialists based on what they find and what is common in our area.
Foundation and soil
Collin County has expansive clay soils that can lead to movement in slab foundations. If there are signs of settlement or previous repairs, consider a foundation specialist or a structural engineer. Written evaluations help you weigh cost and risk.
Drainage and floodplain
Check grading, gutters, and drainage around the home. Review flood maps and ask about localized drainage history. Creek corridors and low spots can influence water flow during heavy rain. Proper drainage helps protect the foundation and interior.
Systems and specialty checks
- Roof inspection and moisture intrusion review
- HVAC evaluation, including age, service history, and ductwork
- Plumbing and a sewer scope to evaluate underground lines
- Termite and other wood-destroying insects (WDI) inspection
- Pool or spa inspection if applicable
- Mold or indoor air quality testing if there are odors or prior water issues
Title, survey, and records
Order the title commitment and review all listed exceptions. Confirm the survey or order a new one if needed. Look for easements, encroachments, or boundary issues. Verify permits and final inspections for past work through the applicable city portal. Review HOA covenants, rules, and any pending assessments. Check property tax records and exemptions through the Collin Central Appraisal District. Keep copies of receipts and maintenance history for big-ticket items.
Smart negotiation in a competitive market
Sellers in Collin County suburbs like Frisco, McKinney, Plano, Allen, and Celina may prefer shorter option periods or larger option fees. You can still protect your interests while writing a strong offer.
- Keep the option period short but sufficient. Pre-schedule inspectors to move quickly.
- Consider a larger option fee to signal strength while keeping your right to terminate.
- Avoid waiving the option if you are risk-averse. If you must, explore pre-offer or limited inspections when the seller allows access.
- Put all deadlines and notice methods in writing as the contract requires. Clarity reduces disputes.
Risk management matters too. Understand your exposure. The option fee is typically lost if you proceed, and earnest money may be at risk if you miss contract steps. Hire experienced local inspectors and licensed specialists to reduce uncertainty.
Typical costs buyers should expect
- Option fee: commonly $100 to $500, sometimes higher in multiple-offer situations
- General home inspection: about $300 to $600
- Structural engineer evaluation: about $300 to $1,500
- Sewer scope: about $150 to $400
- Termite (WDI) inspection: about $50 to $150
- Specialized tests like mold, radon, or HVAC diagnostic: often $100 to $500 each
- HOA resale package or certificate: varies by association
Common mistakes to avoid
- Waiting to schedule inspections and running out of time
- Relying on verbal agreements instead of written amendments before the option deadline
- Missing the termination deadline by hours and losing leverage
- Skipping permit checks, HOA rules, or flood and drainage review
- Failing to document delivery of notices with time-stamped proof
Local resources to check
- Texas Real Estate Commission for standard contract forms and consumer information
- Collin Central Appraisal District for tax records and exemptions
- Collin County Clerk for recorded plats, deeds, and liens
- City building department portals in Frisco, McKinney, Plano, Allen, Richardson, and Celina for permits and final inspections
- FEMA and local floodplain administrators for flood data
- Your title company for escrow procedures, title commitments, and survey guidance
- Licensed local inspectors, structural engineers, and WDI specialists
- HOA management companies for CC&Rs, rules, financials, and resale certificates
The bottom line for Collin County buyers
Your option period is a powerful tool. Use it to complete inspections, verify records, and make a confident decision. Move fast, track deadlines, and keep everything in writing. When issues come up, negotiate repairs or credits before the clock runs out, or terminate on time and pivot to the next home.
If you want local guidance from offer to close, our team can help you schedule inspections quickly, review findings, and keep your contract on track. Reach out to KW 1st Team to map out your option strategy and move forward with confidence.
FAQs
What is the Texas option period in a home purchase?
- It is a short, negotiated window after the contract takes effect when you can terminate for any reason by giving proper written notice and keep your earnest money per the contract terms.
How long is a typical option period in Collin County?
- Length is negotiated, but in competitive markets you often see shorter periods such as 3 to 7 days, with faster scheduling to fit that timeline.
Who gets the option fee, and is it refundable?
- You pay the option fee as the contract states, often to the seller or through the title company. It is typically nonrefundable but is often credited to you at closing if the sale proceeds.
Are option period deadlines calendar days or business days?
- Most TREC deadlines count in calendar days unless your contract says otherwise, so verify the exact language and set reminders.
Can I extend the option period if inspections uncover issues?
- You can ask for an extension, but the seller must agree in writing. If the seller declines, you must act before the original deadline.
What inspections are most important for Collin County homes?
- Start with a general inspection, then consider foundation evaluations, roof checks, HVAC diagnostics, sewer scopes, and termite inspections. Add pool or mold testing as needed.
What happens if I miss the option deadline and want to cancel?
- You may lose the right to terminate for any reason, and the seller could have remedies that include retaining your earnest money. Follow the contract’s procedures and timelines.
How do I properly deliver a termination during the option period?
- Send written notice to the party named in your contract using an allowed method, and keep proof of delivery with timestamps before the deadline expires.
