Option Period in Texas: A Day-by-Day Guide for Lubbock Buyers

A lot of Lubbock buyers have a general sense of what the option period is by the time they go under contract on a home. What they are less clear on is how it actually works in practice. What happens on day one? What are the deadlines? What does it mean to terminate correctly? What happens if the option period ends and you have not made a decision?

Those details matter enormously. Getting them wrong can cost you your earnest money, your exit right, or both. Here is a practical breakdown of how the option period actually works from start to finish.

Day Zero: The Contract Is Executed

The option period does not start the day you sign. It starts the day after the contract is fully executed, meaning the day after all parties have signed and the fully executed contract has been delivered. This distinction matters because a contract that is signed on a Friday evening and delivered on Saturday might not be fully executed until Saturday, which means the option period begins Sunday. Make sure you know the exact execution date so you are counting the days correctly from the start.

The Option Fee Must Be Delivered Within Three Days

Once the contract is executed, the clock starts on delivering the option fee. In Texas, the option fee must be delivered to the seller or their designated representative within three days of contract execution. This is a hard deadline. If the option fee is not delivered on time, the buyer may lose the right to the option period entirely even if it was negotiated into the contract. Get the option fee delivered immediately. Do not wait until day three.

The option fee is a personal check or cashier's check made out to the seller, not the title company. It goes directly to the seller and it is non-refundable under any circumstances. If you terminate during the option period you lose the option fee. If you close on the home it typically gets credited back toward your purchase.

Day One: Schedule Your Inspection Immediately

The moment the contract is executed, get your home inspection scheduled. Do not wait a few days to get around to it. In a market like Lubbock where good inspectors stay busy, waiting even two days can mean your inspector cannot get to the property until day five or six of a seven day option period. That leaves almost no time to review the report, request repairs, or make a decision before the option expires.

Call the inspector the same day the contract is executed. Get on the schedule for day one or two of the option period if at all possible. The earlier the inspection happens, the more time you have to respond to what it finds.

During the Option Period: Do Your Full Due Diligence

The option period is not just for the inspection. It is your window to do everything you need to feel confident about this purchase. Beyond the general home inspection, consider whether the property warrants additional specialized inspections. A sewer scope on an older home in Lubbock can surface expensive underground line issues that a standard inspection will not catch. A dedicated HVAC evaluation gives you more detail on the condition and remaining lifespan of the system. A pool inspection if there is one. A structural engineer if the foundation raises any questions during the general inspection.

You should also use this time to walk through the home again, ideally after the inspection so you can see it with the inspector's findings in mind. Look at it with fresh eyes. Make sure the layout still works, the neighborhood still feels right, and nothing has shifted in how you feel about the purchase now that you know more about the property.

After the Inspection: Three Options

Once the inspection report is in your hands, you have three paths forward. First, you can move forward with the purchase as-is, accepting the home in its current condition and proceeding toward closing. Second, you can negotiate with the seller by submitting a repair amendment requesting that specific items be addressed before closing, a reduction in the purchase price, or a credit to you at closing to handle the repairs yourself. Third, you can terminate the contract during the option period, get your earnest money back, and move on.

There is no rule that says you have to find a major defect to terminate during the option period. The option period gives you the unrestricted right to walk away for any reason. Cold feet, a better property that came on the market, a job change, a shift in your financial situation. None of these need to be explained to the seller. The option period is your protection and you do not owe anyone a justification for using it.

The Termination Deadline Is 5:00 PM on the Final Day

This is the most critical detail of the entire option period and the one that causes the most problems when buyers are not careful. The option period expires at exactly 5:00 PM on the last day specified in the contract. Not midnight. Not end of business. 5:00 PM.

If you need to terminate, the written termination notice must be delivered to the seller or their representative before that 5:00 PM deadline. If you miss it by an hour, your option has expired. At that point you are in a much more complicated situation if you want to back out, and depending on the contract terms, you could lose your earnest money. Set a calendar reminder. Do not let the option period expire by accident.

What Happens When the Option Period Ends

If the option period expires without a termination notice being delivered, the contract moves forward and you are no longer protected by the unrestricted right to walk away. From that point, backing out of the contract requires a contractual basis to do so, such as a financing contingency or a failed inspection repair negotiation, and the rules around earnest money become much more complicated.

The option period is a powerful tool. It is also a window that closes permanently. Use every day of it wisely, get your inspection done early, and make your decision before the clock runs out.