Earnest Money & Option Period Texas

Earnest Money and the Option Period in Texas (San Antonio Guide): What Buyers Need to Know

by Christopher Beal

Texas earnest money and option period paperwork for a home purchase

Earnest Money and the Option Period in Texas (San Antonio Guide): What Buyers Need to Know
By Christopher Beal | Veteran Real Estate San Antonio: The Beal Group | March 22, 2026

Texas real estate contracts move fast, and two items can make or break a deal before you even finish scheduling inspections: earnest money and the option period. If you're buying a home in San Antonio -- especially if you're relocating for JBSA, using a VA loan, or trying to compete in a tight neighborhood -- you need to understand what these terms really mean, how the deadlines are counted, and what happens if you miss them.

What is earnest money in a Texas home purchase?

Earnest money is the deposit a buyer delivers to an escrow agent (typically the title company) after the parties have an executed contract. In Texas, earnest money is not just a "gesture" -- it's a performance obligation tied to a strict deadline in the standard One to Four Family Residential Contract (Resale) promulgated by the Texas Real Estate Commission (TREC).

What is the option period (and why do Texas buyers pay an option fee)?

The option period is a negotiated window of time that gives the buyer an unrestricted right to terminate the contract for any reason. In exchange, the buyer pays an option fee. Texas buyers love the option period because it creates a clear due-diligence lane -- inspection, repair negotiations, and final go/no-go decisions -- without needing a specific contingency to terminate.

Important: In the TREC resale contract, the option period is only available if the buyer agrees to pay the option fee within the time required. If the option fee isn't delivered on time (or the contract shows $0), the buyer does not have the unrestricted right to terminate under the option paragraph.

When are earnest money and option fee due in Texas?

Item	What it does	Texas deadline (TREC resale contract)
Earnest money	Shows contract performance and may be at risk if buyer defaults.	Within 3 days after Effective Date (extended if Day 3 is weekend/holiday).
Option fee	Pays for the buyer's unrestricted termination right during the option period.	Within 3 days after Effective Date (extended if Day 3 is weekend/holiday).
Option period termination notice	The buyer's notice deadline to terminate under the option.	By 5:00 p.m. local time on the last day of the option period.

What should military and relocating families do differently?

PCS timelines and remote touring can compress due diligence. If you're buying from out of town, I recommend a "timeline first" approach:

Schedule inspections the moment you're under contract (don't wait for the portal login).
Make a repair-request plan before the inspection so you're not deciding under pressure.
Choose an option period length that matches your real schedule -- not wishful thinking.
Confirm title company wiring instructions early and avoid last-minute payment issues.

Why Work with Christopher Beal?

U.S. Army Veteran -- understands military life, PCS moves, and VA loan benefits firsthand
SABJ Top 25 Realtor -- #14 in 2025, #13 in 2024
3x Platinum Top 50 Producer and 6x ICON Agent at eXp Realty
Military Relocation Professional (MRP) certified
293+ military and veteran families served -- over $112M in closed volume

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Call or text Christopher Beal: (210) 882-8583