09/09/2026
🏡 Buyer Tip #3 | Earnest Money vs. Option Fee
If you’re buying a home in Texas, you’ll probably hear both of these terms shortly after your offer is accepted—but they serve two different purposes.
💰 Earnest Money shows the seller you’re serious about purchasing the home. It’s held by the escrow agent and, when you close, is credited toward your purchase.
⏱️ Option Fee pays for your unrestricted right to terminate the contract during the negotiated option period. This is typically when you’ll have the home inspected and decide whether you’re comfortable moving forward.
📌 And don’t forget the deadline! Under the current TREC contract, earnest money and the option fee are generally due within 3 days after the effective date, with Saturdays, Sundays and legal holidays excluded when calculating this particular deadline.
There are important details and exceptions that can affect your money, which is why understanding your contract and its deadlines is so important.
Thinking about buying? I’ll help you understand each step—and keep track of the important dates along the way.
Lynn Stewart, REALTOR®�Re*****on Properties�📞 281-793-3577�🌐 LynnStewartRealEstate.com
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