Ever heard the term “option period” tossed around when you fall in love with a Montrose townhome or a charming bungalow? If you are buying in Neartown-Montrose, this small window can be the smartest protection you have. It gives you time to inspect, verify risks like flood and foundation, and decide if the home is right for you. In this guide, you’ll learn how the Texas option period works, what timelines and fees look like in central Houston, and how to use that time wisely for both townhomes and older single-family homes. Let’s dive in.
Texas option period, in plain English
The option period is a short, negotiated time after a contract is signed when you have an unrestricted right to terminate for any reason. You secure this right by paying an option fee to the seller. Texas licensees use standard contract forms, and the option terms live in those forms from the Texas Real Estate Commission. You can review the official structure on the TREC forms and guidance page.
The option period is different from your earnest money and other contingencies. The option fee is paid for the right to cancel. Earnest money is a good‑faith deposit held in escrow. If you terminate within the option period, your earnest money is typically returned per contract terms, though the option fee is usually nonrefundable. Many contracts allow the option fee to be credited to you at closing. Always confirm the exact language and delivery requirements in your contract.
Timelines and fees in Montrose
Across Texas, option periods often run 5 to 10 calendar days. In a hot, multiple-offer situation, you may see 1 to 3 days. In central Houston, where many Montrose homes are older or unique, buyers often aim for at least 7 calendar days to fit in full inspections and estimates.
Option fees in the Houston area commonly range from about 100 to 500 dollars. Buyers sometimes offer higher fees, including several hundred to a thousand dollars, to strengthen their offer in competitive scenarios. The countdown typically starts on the contract effective date and runs in calendar days. Confirm the exact cutoff time in your contract and how termination notices must be delivered.
What to do during your option period
Use this time to move fast, verify condition, and collect facts that support your next move.
Core inspections to schedule first
- General home inspection by a licensed professional. Scope includes roof, foundation, HVAC, plumbing, electrical, structure, and more. For standards and scope, see the American Society of Home Inspectors and InterNACHI checklists.
- WDI/termite inspection by a licensed pest specialist.
- Sewer scope, especially for older streets with mature trees and legacy pipe materials.
- Structural or foundation evaluation if you see sloping floors, sticking doors, or notable cracks.
- Specialist reviews as needed: roof, HVAC, licensed electrician, licensed plumber, and moisture or mold evaluation when conditions suggest.
- For pre‑1978 homes, understand lead-based paint rules and testing options via the U.S. EPA resource center.
Montrose-specific checks to prioritize
- Foundation and soils. Houston’s expansive clays make movement common. Watch for settlement, cracked brick, and doors or windows that bind.
- Flood and drainage. Parts of Montrose sit near bayou corridors. Review the FEMA Flood Map Service Center and the Harris County Flood Control District resources for floodplain and drainage context. Even outside mapped zones, localized ponding can occur.
- Sewer lines and trees. Mature trees can intrude on older laterals. A camera scope helps you understand repair risk and costs.
- Historic or permitting overlays. Some streets may be subject to additional review. Verify requirements with the City of Houston if you plan renovations.
- Insurance implications. Older systems and flood exposure can affect premiums and coverage. Review guidance from the Texas Department of Insurance and obtain quotes early if costs matter to your decision.
Townhomes vs older single-family homes
Many Montrose buyers compare newer infill townhomes with early to mid‑century houses. Your option period approach should reflect the property type.
Montrose townhomes: what to review
- Request HOA or POA documents immediately: bylaws, CC&Rs, budget, reserves, meeting minutes, insurance summary, and any assessment history or pending litigation.
- Use the mandatory membership addendum timelines in the standard Texas contracts and begin review as soon as you receive the package. Refer to the TREC forms library for the governing addenda.
- Align inspections with responsibilities. Inspect your unit systems, then assess common elements like roof, exterior, and shared foundations as allowed. Confirm in the CC&Rs what the HOA maintains versus what you maintain.
- Clarify insurance. Understand what the HOA’s master policy covers and where your HO‑6 policy begins. Ask about reserves and any upcoming capital projects.
Older bungalows and cottages: key focus areas
- Structure and foundation. Many homes are pier and beam or older slab. A structural specialist is wise if your general inspector flags movement.
- Electrical safety and capacity. Look for outdated wiring types and undersized service.
- Plumbing materials and sewer lines. Identify galvanized, cast iron, or polybutylene, and check water heater condition and venting.
- Roofing, flashing, and prior additions. Ask for permit history on significant work. For year built, lot size, and tax data, the Harris County Appraisal District is a useful reference.
- Lead-based paint rules apply to pre‑1978 dwellings. Review options and disclosures through the EPA’s guidance.
How to use inspection results to negotiate
Start with safety and major systems. Electrical hazards, active leaks, structural concerns, sewer failures, or significant mold should be top priority. Costly deferred maintenance, like foundation work or a failing roof, also belongs on the must-address list. Cosmetic items usually sit lower unless they mask a system issue.
Your paths are simple. You can terminate within the option period and recover your earnest money per contract terms. You can proceed and ask for repairs, credits, or a price change supported by contractor estimates. Put every agreement in writing using the appropriate TREC amendment or repair forms and deliver them per your contract instructions. If the seller declines your requests, consider credits, limited repairs, or termination within the window.
After the option period
Once the option period ends, you lose the unrestricted right to terminate. You can still request repairs, but the seller can decline. Your remedies then follow the contract. This is why moving quickly on inspections, estimates, and documentation during the option period matters.
A 7-day Montrose option timeline
- Day 0 (effective date): Deliver the option fee as required. Read your contract for exact deadlines and notice methods. Order the general and WDI inspections. If applicable, request HOA documents.
- Days 1–3: Complete general and WDI inspections. Schedule sewer scope and any needed specialists. If settlement is suspected, book a structural engineer as early as possible.
- Days 4–6: Compile reports and gather contractor estimates. Prioritize what you want repaired or credited. Draft a clear amendment or prepare a termination notice as needed.
- Day 7: If terminating, deliver written notice before the deadline. If proceeding, finalize repairs or credits in writing and continue with financing and closing milestones.
Smart offer strategies in competitive moments
Shortening the option period or increasing the option fee can make your offer stand out, but it raises your risk. In Montrose, where older systems and drainage or foundation questions are common, cutting your window too much can backfire. If you need to be aggressive, line up inspectors in advance and be ready to inspect on Day 1. The goal is to keep your competitiveness without giving up the protection you need.
Local resources worth bookmarking
- Review Texas contracts and addenda on the TREC forms page.
- Check flood maps and drainage context through the FEMA Flood Map Service Center and the Harris County Flood Control District.
- Explore inspection standards via ASHI and InterNACHI.
- Verify property details at the Harris County Appraisal District and explore local listings with the Houston Association of REALTORS.
- Learn about insurance considerations at the Texas Department of Insurance.
Buying in Montrose is exciting, but the best deals survive due diligence. Use your option period to confirm condition, validate risks, and negotiate from facts. If you want a calm, strategic approach tailored to Montrose townhomes and older single-family homes, we are here to help. Connect with The LaRose Kaileh Group to Request a Private Consultation.
FAQs
What is the Texas option period when buying in Montrose?
- It is a short, negotiated window after contract ratification that gives you an unrestricted right to terminate for any reason in exchange for an option fee, as structured in TREC contract forms.
How long is a typical option period in Houston?
- Many run 5 to 10 calendar days, but hot situations can be 1 to 3 days. In Montrose, 7 days is common to allow full inspections and estimates.
What option fee should I expect to pay?
- In the Houston area, fees often range from about 100 to 500 dollars, with higher fees used in multiple-offer scenarios to strengthen an offer.
If I terminate during the option period, do I get my earnest money back?
- Typically yes, earnest money is returned to you if you terminate during the option period per contract terms. The option fee is usually nonrefundable, though it is often credited at closing if you proceed.
Which inspections matter most for Montrose homes?
- Start with a general inspection and WDI, then add sewer scope, structural review if needed, and specialist checks for roof, HVAC, electrical, and plumbing. For pre‑1978 homes, review EPA lead paint guidance.
What should I look for with Montrose townhomes and HOAs?
- Review CC&Rs, budgets, reserves, insurance coverage, meeting minutes, and assessment history. Confirm what the HOA maintains versus what you insure and maintain, using timelines and addenda in the TREC forms library.
How do I check flood risk for a Montrose property?
- Review the FEMA Flood Map Service Center for flood zones and the Harris County Flood Control District for local drainage information. Even outside mapped zones, verify site drainage during inspections.
