From the Blog
The Texas Option Period: What a $100 to $300 Fee Buys a San Antonio Buyer
In Texas, the option period is the buyer's negotiated right to walk away for any reason within a set number of calendar days, typically 7 to 10 days in San Antonio, for an option fee that usually runs $100 to $300. During that window you can inspect, negotiate, and verify, then terminate and get your earnest money back if anything does not add up. Here is how the option period works under the current TREC contract, and why it is usually the best money a buyer spends.
In Texas, the option period is the buyer's negotiated right to walk away for any reason within a set number of calendar days, typically 7 to 10 days in San Antonio, for an option fee that usually runs $100 to $300. During that window you can inspect, negotiate, and verify, then terminate and get your earnest money back if anything does not add up. Here is how the option period works under the current TREC contract, and why it is usually the best money a buyer spends.
This is the video I send buyers before they sign: the contract mistakes that cost more than the option fee ever will.
On my channel: Don't Make This Huge Mistake When Purchasing A Home In San Antonio
The paragraph that starts the clock
Paragraph 5 of the TREC One to Four Family Residential Contract (Resale), Form 20-19, governs the option period. The window is a negotiated number of calendar days starting the day after the contract's effective date, and written termination notice must be delivered by 5:00 p.m. local property time on the final day. Under Paragraph 5A, the option fee and earnest money go to the escrow agent within 3 days after the effective date.
What the fee actually is
The option fee is negotiated, typically $100 to $300 in San Antonio for a 7 to 10 day window, paid to the seller and generally non-refundable, though it is credited at closing if the sale completes. Under Paragraph 5D, if no option fee is stated or it is not paid on time, the buyer has no unrestricted termination right. In competitive situations buyers sometimes offer more, but in today's more balanced San Antonio market the standard window is usually negotiable.
What you do with the days
Schedule and complete the home inspection and the termite or WDI inspection, negotiate repairs or credits, review the seller's disclosures and title commitment, and confirm your financing and appraisal. If anything fails, you terminate for any reason or no reason, forfeit only the option fee, and your earnest money returns. That is the whole point: the fee buys certainty before you are committed.
Why waiving it should scare you
In hot markets, buyers shorten or waive the option period to win offers, and some do. That trade removes your only unrestricted exit. In San Antonio's 2026 market, with inventory up and homes taking longer to sell, there is little reason to give away the window. Keep the days, spend them on inspections, and negotiate from evidence instead of hope.
Frequently asked questions
Is the option fee refundable?
Generally not. It is paid to the seller in exchange for the right to terminate, and it is credited at closing if the sale completes.
What happens to my earnest money if I terminate?
With a timely termination notice, the earnest money is returned to you per the contract's timeline. You only lose the option fee.
Can I extend the option period?
Yes, if the seller agrees. Extensions are negotiated, usually for an additional fee, and should be in writing.
Written by Phyllis Domingo
REALTOR® · TX License 745926 · 100+ homes sold · Helping families move well in San Antonio and the Hill Country since long before the hard part became normal.
Have a question about this topic?
Every family's situation is different. Send me a note and I will respond personally, usually within a business day.