What Is Option Money When Selling A House
Selection FEES FOR AN OPTION PERIOD IN SAN ANTONIO, TX
In a Texas Residential Real Estate agreement, a heir-apparent may choose to have an pick flow in exchange for an option fee.
An option catamenia is a period of time when a heir-apparent is allowed to terminate a purchase contract for ANY REASON – or no reason at all. A buyer offers the seller a sum of money for this "right cease for any reason." The fee, chosen an Option Fee, is offered at the fourth dimension the offer is submitted. If accepted, the seller collects the fee. During the Pick Flow, a buyer can:
- Rent an Inspector
- Shop Mortgages
- Shop Insurance providers
- Shop Home Protection Plans
- Tour New Listings
- and more
An option catamenia tin be any number of days for any amount of money, every bit long every bit both the buyer and seller agree.
Scenario Example:
$25 a day for a seven-day choice period totaling $175 payable to the seller. During the Option Period (the first seven days of the contract), a heir-apparent tin have the home inspected. If repairs are recommended, a buyer can submit a repair listing to the seller Earlier the pick menstruation expires. If the seller agrees to the repairs, the pick menses tin can expire and anybody moves forrad towards closing – the selection fee can be credited back to the buyer at closing.
If, during the choice period, the seller is non-negotiable regarding repairs or any other contingency, a buyer can choose to walk abroad and terminate the contract. The heir-apparent's Earnest Money is typically refunded and the seller keeps the $175 option fee.
An option fee is basically paying the seller to take the house off the market so a buyer has time to determine whether or not the home is "the 1."
FAQ:
Q: Who is the Option Fee payable to?
A: The Pick Fee should be made payable to the Championship Company who will either forward it to the seller or hold information technology until endmost day (seller'southward choice).
Q: Is a check or money order accepted?
A: Normally, yes. A wire transfer is probably the quickest way to meet the deadline. A receipt should exist signed and provided for proof of payment.
Q: When volition the Choice Fee be cashed or deposited?
A: The Option Fee should exist delivered to the Championship Visitor inside iii days after the effective date of the contract. If non delivered by the contract deadline, the option period is not valid.
Q: What happens if I can't evangelize the Pick Fee within the iii days?
A: If the Option Fee is not delivered to the title company inside the three days from the constructive appointment of the contract, y'all forfeit the right to cease the contract for any reason. You will not have an constructive Option Menstruation.
Q: What happens to the Option Fee if I cancel the contract during my Option Menstruum?
A: The seller retains the fee for allowing the Pick Period.
Q: What happens to the Choice Fee if I choose to close on the abode?
A: In the earnest money contract, a buyer may request to take the Option Fee credited back to the buyer on closing and funding.
Q: Do I have to requite a reason why I'm terminating during the Choice Period?
A: Absolutely non! Although your reason can help ease a seller's curiosity, if you've paid for the right to back out for Any or NO reason, the disclosure is completely upwardly to you lot.
Val J Aranda, REALTOR® & Certified eXp University Mentor
"Coaching Texas Habitation Buyers and Sellers since 1998"
A Wonderful Life Real Estate Group
Brokered by eXp Realty, LLC
Call/Text: 210-378-5987
Perfecthomefinder@gmail.com
http://world wide web.aWonderfulLifeRealEstateGroup.com
If you still have questions well-nigh the home buying process, I am at your service SEVEN DAYS A WEEK! I proceed my telephone on afterwards v:00 pm to assistance accommodate your busy work schedule. I'm "on-call", even after everyone else clocks out!
STILL HAVE QUESTIONS? Send it on over. I'll be happy to accost your concerns.
Texas law requires all real estate license holders to provide the Data Nearly Brokerage Services to all prospective clients. TREC'south Consumer Protection Notice.
Source: https://agentval.com/teaching-texas-home-buyers/what-is-an-option-period-and-option-fee/
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