From the Legal Hotline: Delivering the Option Fee

We often get questions about the different requirements for delivery of the option fee and delivery of the earnest money in the TREC residential contracts approved for mandatory use. The earnest money should be delivered to the title company, while the option fee should be delivered directly to the seller. Both should be delivered within three days after the effective date of the contract. However, if the last day to deliver the earnest money lands on a Saturday, Sunday, or legal holiday, this deadline is extended until the next day that is not a Saturday, Sunday, or legal holiday. The time to deliver the option fee is not affected by the weekend or legal holidays.

Iman Ali, associate counsel