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Dating contract cancellation texas

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The amount of money (option fee) and the length of time (option period) are negotiable items between the parties to the contract.The final question is whether the money will be credited back at closing – typically we see that it “will” be credited.(local time where the Property is located) by the date specified.If no dollar amount is stated as the Option Fee or if Buyer fails to pay the Option Fee to Seller within the time prescribed, this paragraph will not be a part of this contract and Buyer shall not have the unrestricted right to terminate this contract.The other critical timeline, and this has changed on the new contracts as of January 1, 2016, is the timeline for notification of termination.This timeline is negotiable and is filled into the blank in the paragraph – basically, the paragraph states that the buyer will pay x amount of money for an option period of x days.That phrase is used often in real estate and it simply means that if you don’t meet a deadline, there are consequences.In this case, there are two very important deadlines. This fee must be paid to the seller within three days of the effective date of the contract (which is written on the contract when all parties sign off on it – just below Paragraph 24 and just above the signature line).

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This paragraph asks four basic questions – is there an option period, how much is the buyer paying to have one, how many days does it last, and will that money be credited back to the buyer at closing.

If the buyer and seller come to an agreement on those items, they can sign an amendment to the contract reflecting those changes, but if they cannot come to an agreement, the buyer would have a way to terminate the contract and not lose their earnest money.

The buyer would then forfeit their option fee, which the seller would keep.

Found in Paragraph 23 of the One to Four Family Residential Contract (Resale), it is a relatively simple part of the contract that wields a lot of power.

Care has to be taken to follow the timelines closely as missing this one, could be potentially costly to the buyer.