Thinking about making an offer on a Midtown condo or townhome and worried about what you might find after you sign? You are not alone. The Texas option period gives you a short window to inspect, review HOA documents, and decide with confidence. In this guide, you will learn what the option period is, typical Midtown timelines and fees, and how to use this time to protect your investment. Let’s dive in.
What the option period means in Texas
The option period is a negotiated number of days in the Texas residential contract when you have the right to terminate for any reason. This right comes from the Option paragraph in the TREC One to Four Family Residential Contract. You secure it by paying an option fee to the seller.
- Option fee: A separate, usually smaller payment that gives you the right to walk away during the option period. If you terminate, the seller keeps this fee.
- Earnest money: A larger deposit held in escrow that shows you plan to perform. If you terminate during the option period, you typically get your earnest money back according to the contract.
The key benefit is flexibility. You can cancel for any reason during the option period. That is especially helpful for Midtown condos and townhomes where HOA rules, fees, reserves, or building repairs can be significant. After the option window closes, your ability to terminate is limited to other contract terms, such as seller default or certain financing provisions if included.
Typical Midtown timelines and fees
Option periods in Texas resale deals usually range from 3 to 10 days. For intown condos and townhomes in competitive areas like Midtown, 3 to 5 days is common. Longer windows, such as 7 days, can be negotiated but may need a stronger fee or other terms.
Option fees in the Houston area often run about $100 to $500. For many Midtown condo and townhome sales, you might see $100 to $300. In hot multiple-offer situations, some buyers offer a higher fee to strengthen their offer or to secure a longer review period.
Keep in mind that your option period is separate from the lender’s loan process and the appraisal. You will often use the option window to review HOA resale documents, bylaws, budget, and any special assessments while inspections are underway.
How to use your option period well
Schedule inspections fast
Book your general inspection as soon as the contract is executed. Many Houston inspectors can be on site within 24 to 72 hours, but weekends and busy seasons can slow things down. Consider a WDI/termite check at the same time and add specialty inspections if needed.
Common condo and townhome inspections include balcony and railing safety, shared-wall plumbing, HVAC components, building exterior where accessible, and roof access if permitted. If more testing is needed, such as mold sampling or HVAC diagnostics, plan your calendar so results arrive before your option expires.
Review HOA and building documents
Use the option period to review the HOA resale certificate, bylaws, budget, reserves, insurance policy, meeting minutes, and any special assessments or litigation notices. These items affect your monthly costs and future resale value. If you need extra time for HOA review, negotiate for it up front rather than rushing or waiving protection.
Negotiate repairs or credits
If you plan to move forward but want repairs or a credit, send your requests during the option period. Provide inspection pages or estimates when possible. If you cannot reach agreement and your concerns are significant, you can terminate within the option window, lose only the option fee, and keep your earnest money per the contract.
Strategy in competitive Midtown offers
Show strength while keeping protections
To compete in Midtown, consider a shorter option period, such as 3 days, paired with a meaningful option fee. You can also improve your position with a strong pre-approval and a larger earnest-money deposit. If you need more time for HOA review, offer a higher option fee for a 5 to 7 day window.
Understand the trade-offs
Waiving the option period can make your offer more attractive, but you give up a clean exit. Very short option periods increase the risk that you find material issues after your right to terminate expires. A higher option fee can buy more time, but it increases your out-of-pocket cost if you walk away. Choose the balance that fits your risk tolerance and budget.
A simple 7-day example timeline
- Day 0: Contract executed. Option period starts. Deliver option fee and deposit earnest money as instructed in the contract.
- Day 0–1: Book general and WDI inspections. Request HOA resale documents.
- Day 1–3: Complete general inspection and initial document review. Order any specialty inspections or contractor assessments.
- Day 3–5: Receive reports and quotes. Identify repair requests or credits.
- Day 5–6: Negotiate with the seller on repairs or credits.
- Day 7: Decide to proceed or terminate in writing before the option deadline.
Midtown condo and townhome checklist
- Get pre-approved before you write the offer.
- Discuss comps, HOA health, and building history with your agent.
- Pre-select inspectors who know condos and attached townhomes and can schedule quickly.
- During the option period, review the HOA’s budget, reserves, insurance, minutes, and any special assessments.
- Confirm rules for parking, storage, rentals, and renovations.
- Keep written records and send any termination or repair requests within the option window.
Common HOA and building watchouts
- Reserve shortfalls or deferred maintenance on roofs, facades, elevators, or garages.
- Announced or pending special assessments that change your monthly costs.
- Insurance coverage levels for the building and what you must insure personally.
- Restrictions on leasing, short-term rentals, or interior changes.
- Shared-system responsibilities for HVAC, plumbing lines, and exterior elements.
Mistakes to avoid
- Waiting to schedule inspections until mid-option. You lose leverage and time.
- Assuming the lender’s appraisal timeline replaces your option protections. It does not.
- Failing to read the HOA documents. Budget and reserves matter as much as the inspection.
- Missing the written deadline. Your termination right expires if you do not act in time.
Ready to buy in Midtown?
A focused option strategy can help you win the home you want while protecting your budget. Our team pairs Midtown market insight with a tight, step-by-step process so your inspections, HOA review, and negotiations stay on track. If you are weighing how many days to request or what fee to offer, we can help tailor a plan to the building and the market today.
Connect with the Midtown experts at Prestige Realty Group to map your offer strategy and timeline.
FAQs
What is the Texas option period in a Midtown condo purchase?
- It is a negotiated window that gives you the right to terminate for any reason, secured by an option fee, with earnest money typically refunded if you cancel within that period under the contract.
How much is a typical option fee for Midtown condos and townhomes?
- Many Houston-area condo and townhome deals see about $100 to $300, though fees can range higher in competitive situations or for longer option windows.
How long should my option period be in a competitive Midtown market?
- Shorter windows, such as 3 to 5 days, are common; if you need more time for HOA review or specialty inspections, consider offering a higher option fee for 5 to 7 days.
Do appraisal or loan timelines replace my option protections?
- No. The option period is separate from appraisal and loan processes; your lender’s requirements do not extend your right to terminate after the option expires.
What should I prioritize during the option period for a condo?
- Complete general and WDI inspections, review HOA resale documents, budget and reserves, insurance coverage, meeting minutes, and any pending assessments or building repairs.
If I terminate during the option period, do I get my earnest money back?
- Under the standard Texas contract, buyers who terminate within the option period typically receive a refund of earnest money, while the seller keeps the option fee.
