The Option Period and Home Inspection in Texas: A San Antonio Buyer's Guide (2026)

By Chris Dudley, San Antonio REALTOR®, Founder of Legacy Realty Group, brokered by Real Broker, LLC (TREC #731381). Updated October 27, 2026.

Texas does things a little differently from most states. Instead of a separate "inspection contingency," most San Antonio resale contracts use an option period: a short window, bought with an option fee, when you can inspect the home and walk away for any reason. Here is how it works under TREC's current resale contract (TREC form 20-19).

How the option period works

You negotiate two numbers: the option fee and the number of days in the option period. Both are written into paragraph 5 of the contract.
Deliver money within 3 days: The buyer must deliver the earnest money and the option fee to the escrow agent (usually the title company) within 3 days after the contract's effective date. If a deadline falls on a weekend or legal holiday, it moves to the next business day.
Miss the option fee, lose the option: If the option fee is not delivered on time, the buyer does not have the unrestricted right to terminate.
Terminate for any reason: During the option period you can end the contract for any reason by giving notice to the seller by 5:00 p.m. local time on the last day. The contract says time is of the essence, so the deadline is strict.
What you get back: If you terminate in time, your earnest money is refunded; the option fee is not. If you close, the option fee is credited toward the price.

The home inspection

Use a licensed inspector. TREC licenses professional inspectors and real estate inspectors. You can check any inspector, including disciplinary history, with TREC's License Holder Search (TREC).
Expect the TREC report form. Texas inspectors must give you a completed TREC Property Inspection Report Form (REI 7-6) first, even if they also provide their own report.
Know the limits. Under TREC's standards, inspectors are not required to inspect things that are buried or concealed, predict how long a component will last, or check code compliance, and they may not state whether termites are present (they should note visible damage). Ask about separate termite (WDI), sewer-line, pool or foundation inspections if the home calls for them.
Avoid "walkthrough" inspections. TREC warns that walkthrough-style inspections usually don't follow its standards and may not be accepted by some lenders or for home warranty disputes.
Schedule early. Book the inspection as soon as the contract is signed so you have time to get repair quotes before the option period ends.

Seller's disclosure and repairs

Seller's Disclosure Notice: Most resale sellers must give one. If you sign before receiving it, the contract lets you terminate for any reason within 7 days after you receive it (or before closing, if sooner), with earnest money refunded.
"As is" still lets you inspect: Accepting the home as is does not stop you from inspecting, negotiating repairs in an amendment, or terminating during the option period.
Repairs: Agreed repairs are normally done by the seller before closing, by licensed or commercially engaged providers, with receipts and any transferable warranties provided.
Lender-required repairs: If neither side agrees to pay, the contract terminates and earnest money is refunded; if those costs exceed 5% of the price, the buyer can terminate (TREC 20-19, paragraph 7).

Buying new construction? Builder contracts use different forms and timelines. See buying new construction in San Antonio. Buying in an HOA neighborhood? See buying a home with an HOA. Checking flood risk? See flood risk and San Antonio homes.

Frequently asked questions

What is the option period in Texas?

It is a negotiated number of days after the contract's effective date when the buyer can terminate for any reason by notice to the seller by 5:00 p.m. local time on the last day. The buyer pays an option fee for that right.

Do I get my option fee back?

No. If you terminate, the option fee goes to the seller, but your earnest money is refunded. If you buy the home, the option fee is credited toward the price at closing.

When do I have to pay the option fee and earnest money in Texas?

Within 3 days after the effective date of the contract, delivered to the escrow agent. If the option fee is late, you lose the unrestricted right to terminate.

Do Texas home inspectors check for termites?

Under TREC's standards, a general home inspector may not state whether termites are present, but should note visible damage. A separate wood-destroying insect inspection covers termites.

Can I still negotiate repairs if I accept the home as is?

Yes. Under the TREC resale contract, accepting the property as is does not stop you from inspecting, negotiating repairs in an amendment, or terminating during the option period.

Who can help me through the option period on a San Antonio home?

Chris Dudley is a San Antonio REALTOR® and Founder of Legacy Realty Group, brokered by Real Broker, LLC (TREC #731381), serving buyers across San Antonio, Alamo Ranch, Stone Oak, Cibolo, Schertz, New Braunfels and Boerne. Call (210) 838-6099.

Next step

Under contract, or about to be? Call or text Chris Dudley at (210) 838-6099 (Mon-Sat, 9 AM-6 PM).

General information about the TREC resale contract, not legal advice. Read your actual contract and talk with a Texas real estate attorney about your situation.