Texas Option Period for El Paso Homebuyers: What to Do Before It Ends

The Texas option period is a negotiated number of days during which a buyer with a valid termination option may end a residential resale contract by giving timely written notice. El Paso and Horizon City buyers commonly use this window to complete inspections, review property information, investigate major concerns and decide whether to proceed, negotiate an amendment or terminate under the contract.

Casa By Owner prepared this October 2026 guide for buyers purchasing resale homes in El Paso County. The exact rights, fees and deadlines come from the signed contract, so buyers should confirm every date with their real estate agent and consult a Texas real estate attorney when legal advice is needed.

What is the option period in a Texas home purchase?

The Texas Real Estate Commission says the termination option is negotiable. When the buyer pays the agreed option fee within the required time, the buyer receives an unrestricted right to terminate by giving written notice during the option period.

The current TREC One to Four Family Residential Contract (Resale), Form 20-19, became effective July 1, 2026. TREC describes it as the most frequently used form for resale single-family homes, duplexes, triplexes and fourplexes. It is not the form for condominium transactions, builder new homes, or farm and ranch properties.

The option period is not an automatic statewide cooling-off period. The number of days and the option fee are written into the contract and negotiated between the buyer and seller.

When does the option period end?

Under Paragraph 5B of TREC Form 20-19, the option period runs for the number of days stated in the contract after the effective date. The current form requires notice of termination to be given by 5:00 p.m. local time where the property is located on the final day.

That makes the effective date important. Buyers should ask their agent to provide the fully executed contract and clearly identify:

• The contract's effective date
• The number of option days negotiated
• The exact calendar date of the final day
• The 5:00 p.m. local termination deadline
• The method and recipients required for any notice

When are the option fee and earnest money due?

Paragraph 5A of current TREC Form 20-19 states that the buyer must deliver the earnest money and option fee to the escrow agent within three days after the effective date. The payments may be separate or combined.

If the last delivery day falls on a Saturday, Sunday or a legal holiday defined by the contract, the payment deadline extends to the end of the next day that is not one of those days. This rule concerns delivery of the money. Buyers should not assume it automatically changes the option-period termination deadline.

The current contract also says that if no option-fee amount is stated, or if the buyer does not deliver the option fee within the required time, the buyer does not have the unrestricted termination right under Paragraph 5. Time is expressly stated to be of the essence.

What should an El Paso buyer do first?

Schedule a licensed general home inspector as soon as the contract becomes effective. Waiting can make it difficult to obtain an appointment, receive the report, gather estimates and make a reasoned decision before the deadline.

TREC's consumer guidance on Texas property inspections explains that licensed inspectors must follow the agency's Standards of Practice and provide the required inspection report form for covered residential inspections. TREC also cautions that an abbreviated walkthrough may not provide the same scope as a standard inspection.

Buyers can review Casa By Owner's El Paso home inspection guide for practical questions to discuss with an inspector.

Which additional evaluations may be useful?

A general inspection is an important starting point, but it is not an evaluation by every type of specialist. Depending on the property's age, features, visible conditions and the inspector's findings, a buyer may consider qualified evaluations of:

• Roofing and evidence of leaks
• Heating and refrigerated-air systems
• Electrical service and safety concerns
• Plumbing, drains or sewer lines
• Foundation movement or structural concerns
• Termites or other wood-destroying insects
• Swimming pools, solar equipment or other specialty systems

Hydrostatic testing requires separate written seller authorization under the current TREC resale contract. Buyers should coordinate any invasive or specialized test through their agent and appropriate licensed professionals.

What documents should buyers review during the option period?

The option period is a useful time to compare physical findings with available property documents. Depending on the transaction, those may include:

• The seller's disclosure notice
• Prior inspection reports or repair invoices provided by the seller
• Roof, HVAC, foundation or appliance warranties
• Insurance claim information made available in the transaction
• Solar-panel, security-system or water-softener lease documents
• HOA documents and resale information, when applicable
• The title commitment, exception documents and survey when available

A seller's disclosure is not a substitute for an independent inspection. It reports the seller's knowledge and representations; an inspection evaluates observable conditions within the inspector's scope.

Can buyers ask the seller to make repairs?

Yes, buyers may use inspection findings to request repairs, a price adjustment, a closing-cost credit or another written change. The seller may accept, reject or counter the request.

TREC specifically says a buyer can use the option period to inspect the property and negotiate an amendment for necessary repairs. A request by itself does not guarantee an agreement and should not be treated as an extension of the option period. Any change should be documented in a properly executed written amendment.

What decisions should be made before the deadline?

Before the option period ends, a buyer should evaluate the property's condition, repair costs, financing impact, insurance availability and the seller's written response. The practical choices may include:

1. Proceed under the existing contract terms
2. Proceed after both parties sign an amendment
3. Terminate within the option period by timely written notice, if the buyer holds that right

Under Form 20-19, a timely option termination generally results in the earnest money being refunded, while the option fee is not refunded. The option fee is credited to the sales price if the transaction closes.

Frequently asked questions about the Texas option period

How many days should an option period last?

There is no single period that fits every transaction. The number of days is negotiated and should reflect inspector availability, property complexity, competition, holidays and the time needed for specialist evaluations. Buyers should discuss the tradeoffs with their agent before making an offer.

Is the option fee the same as earnest money?

No. They serve different contract functions. The option fee supports the negotiated termination option, while earnest money is a separate deposit connected to the buyer's performance. Under current Form 20-19, both are delivered to the escrow agent within the time stated in Paragraph 5A.

Does an "as is" purchase prevent an inspection?

No. Current TREC Form 20-19 states that agreeing to accept the property as is does not prevent the buyer from inspecting, negotiating repairs in a later amendment or terminating during an available option period.

Is the option period the same as financing or appraisal approval?

No. Financing and appraisal rights may come from different contract provisions or addenda with separate deadlines. Buyers should track every deadline individually and not assume the option period replaces other protections.

Can the option period be extended?

The parties may agree to change contract terms in writing, but the extension is not automatic. It should be fully executed before the existing deadline. Buyers needing legal guidance about an extension should consult a Texas real estate attorney.