What is the deadline for your buyer to pay an option fee?

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09/30/2016 | Author: TAR Legal Staff

What time does the option fee need to be paid by under Paragraph 23 in the One to Four Family Residential Contract (Resale)?

The buyer is required to pay the option fee within three days after the effective date of the contract. As no time deadline is specified, the option fee must be paid to the seller no later than 11:59 p.m. on the third day after the effective date. For example, if the contract effective date is October 1, the option fee must be paid by 11:59 p.m. October 4.

The 5 p.m. deadline for the option period in Paragraph 23 applies only to the notice of termination and does not affect when the option fee must be paid.

Categories: Forms, Legal
Tags: contract, contracts, option fee, option period, termination option period, legal, legal faq

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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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