UNDO - My Contract Hero

Contract CancelledWhoever invented the undo function in computer software is one of my heroes. Think about it: If something doesn’t turn out the way you intended, hit Control + Z and—poof—it never happened. There aren’t many places in life where you get to undo your actions like that, but the option period in a real estate contract is one of them. It lets you walk away from purchasing property, legally undoing your contract.

How do I know? At my REALTOR®’s urging, I purchased an option period in the contract to buy my current home. With three days remaining in that period, my home inspector found a leak in the plumbing system that he couldn’t pin to a source. The next day, I had a plumber scour the house. I was ready to exercise my termination option, to undo the contract, if he couldn’t figure out what was going on. He eventually located the source: a faulty valve in the sprinkler system. No big deal. The seller fixed it, and I bought the house.

inspection reportIf that leak had turned out to be something larger, however, I had the chance to hit Control + Z on the whole deal. That’s what the option period is for, and it’s right there in your real estate contract.

This could be the most important paragraph in your sales contract. Here it is, the “option period” paragraph:

23. TERMINATION OPTION: For nominal consideration, the receipt of which is hereby acknowledged by Seller, and Buyer’s agreement to pay Seller $ _____ (Option Fee) within 2 days after the effective date of this contract, Seller grants Buyer the unrestricted right to terminate this contract by giving notice of termination to Seller within _____ days after the effective date of this contract (Option Period). If no dollar amount is stated as the Option Fee or if Buyer fails to pay the Option Fee to Seller within the time prescribed, this paragraph will not be a part of this contract and Buyer shall not have the unrestricted right to terminate this contract. If Buyer gives notice of termination within the time prescribed, the Option Fee will not be refunded; however, any earnest money will be refunded to Buyer. The Option Fee __ will __ will not not be credited to the Sales Price at closing. Time is of the essence for this paragraph and strict compliance with the time for performance is required.”

*Texas Association of Realtors and Texas Real Estate Commission
For all your Montgomery County Real Estate Needs contact the Michelle Wheeler Team
Wayne Stroman, Broker
Lake-Conroe-Realtors.com TREC Lic. 0416282
Call the Property Desk at 936-588-7004
Sales Office: 14500 HWY 105 W, Conroe, Texas 77304
Mail to: PO Box 2991, Conroe, Texas 77305
Sales: 936-588-4444
Fax: 936-588-4884

Listing and Sales Agent

Michelle Wheeler
Lake Conroe Area Team Leader

Real Estate Listing and Sales

Wayne Stroman
Lake-Conroe-Realtors.com Broker

 

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