The Texas Real Estate Commission in November approved several changes to residential contract forms that go into effect April 1.
The biggest of these changes affects delivery of the option fee. The revised Paragraph 5 combines payment of earnest money and termination option in a single provision and calls for payment of the termination option fee to the escrow agent.
Texas REALTORS® has published answers to frequently asked questions about the changes to delivery of the option fee.
You can also see redlined versions of the approved form revisions at texasrealestate.com.
This probably would have been great 20 years ago, but with today’s technology (Venmo, paypal, etc) it is easier than ever for a buyer to get option money to the Seller directly and have a great electronic trail. I think this is going to cause a lot more work and expense for the title company (thus being passed onto the clients through increased closing costs). What about delivery of option money for say $10 when you are extending the option period in an Amendment? Trip all they way to the title company for $10? Since the contract reads MUST be… Read more »
I believe it made if more complicated for the agent if the seller never gets the option check does that cancel my buyers right to terminate and they now made the title company who was a neutral party a part of the transaction. Before it was very important to make sure the sellers agent received the option period check , now it doesn’t matter and we passed that responsibility to the Title Company.