Options in the Option Period

Published February 27, 2010

Whoa! You, as Buyer, have lots ahead of you in the Option Period. Your Galveston Realtor will help you through this, but get ready for work, deadlines, new inspections, solidifying insurance quotes and time to analyze.

Paragraph 23, in the 1-4 Family Residential Contract, gives Buyers the unrestricted right to terminate the contract within a specified time and Buyers pay an Option Fee for this right. Know when it starts and ends. You can opt out of the contract during this time and get back all of your earnest money.

Anything can happen. Buyer may find another property more appealing or find more repairs than the purchase price justifies.

Sellers can and should continue to show the property and take back-up offers. The Option Period does not negate title/survey issues of Paragraph 6D, Lender required repairs in 7E or financing deadlines in the 3rd Party Financing Condition Addendum.

Buyers should be careful. Option Periods are not automatically extended because inspections aren't timely finished. It's poor planning to wait until the last afternoon to give the Seller a list of things to be negotiated. Buyers should have lots of questions answered before the Option Period even begins.

The Seller's Disclosure Notice, previous surveys & inspection reports and preliminary insurance quotes should be available before the offer is tendered.

By the end of your Option Period you will know if this house is really going to become your home. Good Job!

Next week: To Survey or Not to Survey

David Bowers is President of the Galveston Association of Realtors® and is associated with House Company Realtors. Contact David at (409) 771-4637 or at david(at)davidbowers.com.

- Written By David Bowers

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