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Option Fee
A non-refundable fee paid directly to the seller in exchange for the right to terminate the contract during the option period.
What you should know
The option fee is unique to Texas. It buys you a window of time — typically 5 to 10 days — during which you can have inspections done and walk away from the contract for ANY reason. The fee is paid directly to the seller (not held in escrow), is usually small, and is generally non-refundable. If you proceed to closing, the option fee is typically credited toward your closing costs. The option period is your protection: use it to inspect thoroughly.