Transaction Coordination

Texas Option Period and Contract Deadlines (TREC 2026)

How the option period works in the TREC One to Four Family Residential Contract (Resale) 20-19, how days are counted, and the earnest money, title, survey, Buyer Approval, disclosure and closing deadlines around it.

Ijharul Islam October 21, 2026 10 min read

The Texas option period, in short: the days after the Effective Date, set in Paragraph 5B of TREC resale contract 20-19, during which a buyer who paid the option fee on time can terminate for any reason. Notice is due by 5:00 p.m. local time on the last day; days are calendar days, with the Effective Date as day zero.

More on this topic: Contract deadlines by state, every guide in one place.

This guide covers the option period and the other dated obligations in the current form, TREC No. 20-19, which took effect July 1, 2026 and replaces 20-18, with paragraph numbers you can check. It's general information, not legal advice; the executed contract controls. For other states, see Colorado contract deadlines and the deadlines in a purchase contract.

Key takeaways

The option period only exists if an option fee is stated and delivered on time (Paragraph 5D).
Earnest money and the option fee are both due within 3 days after the Effective Date (5A); only that delivery deadline rolls off a weekend or Legal Holiday.
Termination notice under 5B must be given by 5:00 p.m. local time on the last day; the form doesn't extend the option period for weekends.
Title and survey objections are waived if not made in time (6D); the seller then has a 15-day Cure Period.
Buyer Approval in the Third Party Financing Addendum is a separate deadline; miss it and the contract is no longer subject to financing approval for the buyer.

What is the Texas option period?

It's the buyer's paid, unrestricted right to terminate. Paragraph 5B says that for the option fee, the seller grants the buyer “the unrestricted right to terminate this contract” by notice within the number of days written in the blank (the Option Period). If the buyer terminates in time, the option fee isn't refunded and goes to the seller, and the earnest money is refunded to the buyer.

If no dollar amount is stated, or the fee isn't delivered on time, the buyer doesn't get the unrestricted right to terminate (5D). The escrow agent may release the option fee to the seller at any time, and it's credited to the sales price at closing (5A(4)). Texas A&M's Real Estate Research Center notes that case law requires an option fee to create the option right, and that a seller may choose to accept a late fee, but accepting it doesn't lengthen the option period.

When are the earnest money and option fee due in Texas?

Both are due to the escrow agent within 3 days after the Effective Date (5A), and they may be paid separately or in one payment. Money received is applied to the option fee first, then the earnest money, then any additional earnest money, so a short combined check still secures the option.

If the last day for delivery falls on a Saturday, Sunday or Legal Holiday, delivery is extended to the end of the next day that isn't one (5A(2)). 20-19 defines Legal Holiday by reference to §§ 662.003(a) and 662.003(b)(4) and (6) of the Texas Government Code. If the buyer doesn't deliver the earnest money in time, the seller may terminate or use the default remedies in Paragraph 15 by notice before the buyer delivers it (5C). Time is of the essence for all of Paragraph 5 (5E). More in the earnest money deadline.

How do you count days in a TREC contract?

Count calendar days, with the Effective Date (the date of final acceptance, filled in by the broker) as day zero. The Research Center's example: an Effective Date of November 1 and a ten-day option period end November 11 at 5 p.m. local time where the property is located.

Only the delivery of money gets the weekend and Legal Holiday extension in 5A(2). Paragraph 5B has no such clause, so an option period that ends on a Sunday ends at 5:00 p.m. that Sunday. A worked example, with a 10-day option period:

Item	Rule	Effective Date Thursday, October 1, 2026
Earnest money and option fee	3 days (5A)	Day 3 is Sunday, October 4, so delivery extends to the end of Monday, October 5
Option period	10 days (5B)	Sunday, October 11, by 5:00 p.m. local time; not extended
Seller's Disclosure Notice termination	7 days after receipt (7B(2))	If delivered Friday, October 2: Friday, October 9, or closing if earlier

The dates are illustrative; see calendar days vs business days for the general rules.

To run your own dates, the free real estate deadline calculator counts each deadline from the Effective Date with the next day as day 1. Leave its weekend roll-forward off for the option period, since 5B doesn't extend it.

What are the other deadlines in the TREC resale contract?

Deadline	Where	What the form says
Earnest money and option fee	5A	Within 3 days after the Effective Date; additional earnest money within the days filled in at 5A(1)
Option period	5B	Days filled in; notice by 5:00 p.m. local time
Buyer Approval	Third Party Financing Addendum 2A	Days after the Effective Date filled in; notice plus the lender's written statement
Property Approval	Third Party Financing Addendum 2B	On or before the 3rd day before the Closing Date
Title commitment	6B	Within 20 days after the title company receives the contract; extends automatically up to 15 days or 3 days before closing, whichever is earlier
Survey	6C	Days filled in for the option chosen: seller's existing survey with a T-47 affidavit or T-47.1 declaration, a new survey by the buyer, or a new survey by the seller
Title and survey objections	6D	Earlier of the Closing Date or the days filled in after the buyer receives the commitment, Exception Documents and survey
Seller's Disclosure Notice	7B	If not yet received, seller delivers within the days filled in; buyer may terminate within 7 days after receipt
Seller's Water Disclosure	7I (new in 20-19)	Same structure as 7B, for groundwater and surface water rights
Closing	9A	On or before the date filled in, or within 7 days after 6D objections are cured or waived, whichever is later

How do the survey and title objection deadlines work in Texas?

The buyer must object in writing by the earlier of the Closing Date or the number of days written in 6D after receiving the commitment, the Exception Documents and the survey. Missing it waives the right to object, though Schedule C requirements of the commitment aren't waived.

If the seller can cure without expense, the seller has 15 days after receiving the objections (the Cure Period), and the Closing Date extends as needed. If objections aren't cured, the buyer has 5 days after the Cure Period ends to terminate (earnest money refunded) or waive them; doing nothing counts as a waiver. A revised commitment, revised survey or new Exception Document restarts the objection window for the new matter. See how to object to title exceptions.

What is the Buyer Approval deadline in the financing addendum?

It's the last day a financed buyer can terminate because the buyer can't get loan approval. Under Paragraph 2A of the Third Party Financing Addendum (TREC 40-11), the buyer terminates within the days written there by giving the seller a notice and a copy of the lender's written statement of the reasons; the earnest money is refunded. If the buyer doesn't, the contract is no longer subject to Buyer Approval.

Property Approval (2B) is about the property, not the buyer: appraisal, insurability or lender-required repairs. The buyer may terminate on or before the 3rd day before the Closing Date, again with the lender's written statement; if not, Property Approval is deemed obtained. Time is of the essence for Paragraph 2.

What happens if you miss a Texas contract deadline?

It depends on the deadline, and the form spells out each one: a late option notice leaves the buyer without the unrestricted right to terminate; late title or survey objections are waived (6D); a missed Buyer Approval date removes that financing condition (40-11, 2A); no termination by the 3rd day before closing means Property Approval is deemed obtained (2B). A party that fails to close by the Closing Date is in default, and the other side has the remedies in Paragraph 15, including terminating and receiving the earnest money.

Notices must be in writing and are effective when mailed, hand-delivered, sent by overnight courier or transmitted electronically to the other party or their agent (Paragraph 21). With consequences this strict, ask a Texas real estate attorney about anything unusual. See also what happens when a contingency deadline is missed.

Which TREC forms go with these deadlines?

Form	Use it for
Notice of Buyer's Termination of Contract (TREC 38-8)	Terminating under the option (Paragraph 5), Buyer Approval, Property Approval, 7B, uncured 6D objections and other grounds
Amendment (TREC 39-11)	Changing the closing date (item 3), extending the option for an additional option fee to 5:00 p.m. on a new date (item 7), waiving the option (item 8), or moving the Buyer Approval date (item 9)
Third Party Financing Addendum (TREC 40-11)	The Buyer Approval and Property Approval deadlines

20-19 also added the Seller's Water Disclosure (7I), defined Legal Holiday in 5A(2), lets notices go to a party's agent (21), and moved brokerage compensation contributions into 12B.

How do you track Texas deadlines without missing one?

Enter the Effective Date as filled in by the broker, then every day count from 5A, 5B, 6B, 6C, 6D, 7B, 7I, 9A and the financing addendum.
Confirm with the escrow agent, on day 3, that the earnest money and option fee were receipted, and note the receipt date.
Put the option period's last day on the calendar with “5:00 p.m.” in the title, and get the buyer's decision the day before.
When the commitment, Exception Documents and survey are all in, start the 6D clock from the last one received.
Update every date when a TREC 39-11 amendment is signed.

Closingbird reads the executed contract and fills in the dates it finds, which you check and edit, then reminds each deadline owner every morning. TREC periods are calendar days, which Closingbird counts. Its business days skip weekends and US federal holidays only, so for the 5A(2) roll-forward, which uses the Texas Legal Holiday definition, set the deadline to the fixed date instead. The 5:00 p.m. cutoff is in the contract, not the reminder: plan for the morning. See deadline tracking.

Frequently asked questions

Does the Texas option period include weekends?

Yes. Days are calendar days, counted from the Effective Date as day zero, and Paragraph 5B doesn't extend the option period when the last day is a weekend or holiday.

What time does the option period end in Texas?

Notices under Paragraph 5B must be given by 5:00 p.m. local time where the property is located on the last day.

Is the option fee refundable in Texas?

Not if the buyer terminates under the option: the fee goes to the seller and the earnest money is refunded. If the deal closes, the option fee is credited to the sales price (5A(4)).

What happens if the option fee is paid late?

If it isn't delivered within the time required, the buyer doesn't have the unrestricted right to terminate (5D). A seller may agree to accept it late, but that doesn't lengthen the option period.

Can you extend the option period in Texas?

Only by agreement. Item 7 of the TREC Amendment (39-11) records an additional option fee and a new end date, still at 5:00 p.m.

How long does a Texas seller have to cure title objections?

15 days after receiving them (the Cure Period in 6D). The buyer then has 5 days to terminate or waive.

Run it in Closingbird

Upload a TREC contract and check the dates Closingbird fills in against Paragraphs 5, 6, 7 and 9, with a morning reminder for every deadline owner. Start a free trial (14-day free trial, no credit card required) or see pricing.

Sources

Checked in October 2026. Rules and prices change, and many vary by state, so confirm with the source, your state's real estate commission or your broker before you rely on them.

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