Give yourself an option

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A pair of glasses and a silver pen sit on top of a contract.

04/10/2015 | Author: Ward Lowe

Whoever invented the undo function in computer software is one of my heroes. Think about it: If something doesn’t turn out the way you intended, hit Control + Z and—poof—it never happened. There aren’t many places in life where you get to undo your actions like that, but the option period in a real estate contract is one of them. It lets you walk away from purchasing property, legally undoing your contract.

How do I know? At my REALTOR®'s urging, I purchased an option period in the contract to buy my current home. With three days remaining in that period, my home inspector found a leak in the plumbing system that he couldn't pin to a source. The next day, I had a plumber scour the house. I was ready to exercise my termination option, to undo the contract, if he couldn’t figure out what was going on. He eventually located the source: a faulty valve in the sprinkler system. No big deal. The seller fixed it, and I bought the house.

If that leak had turned out to be something larger, however, I had the chance to hit Control + Z on the whole deal. That’s what the option period is for, and it’s right there in your real estate contract.

Categories: Buyers
Tags: buying, termination option, contract


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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