Is the option fee applied to the purchase price at closing?

The option period is a negotiated window of time — usually five to ten days — during which a Texas buyer has an unrestricted right to terminate the purchase contract for any reason. The buyer pays a fee directly to the seller to activate this right. No specific justification is required to cancel; written notice delivered before the deadline is sufficient to exit the contract and receive the earnest money back in full.

In most standard residential transactions in New Braunfels in 2026, the option fee runs between $200 and $500. It is negotiable — sellers may request more in competitive situations, and buyers may negotiate lower when they have more leverage. The option fee is paid directly to the seller, is non-refundable if the buyer cancels, and is typically credited back to the buyer at closing if the transaction closes.

Yes. The Texas option period gives the buyer an unrestricted right to terminate — meaning no reason needs to be given and no specific contractual condition needs to be triggered. The only requirement is that written notice of termination is delivered to the seller before the option period deadline. Once that deadline passes, the free exit disappears and standard contract contingencies govern whether the buyer can exit without losing earnest money.

If you cancel during the option period, your earnest money is refunded in full by the title company. What you do not recover is the option fee — that stays with the seller regardless of when or why you cancel. If you back out after the option period ends without a valid contractual contingency, the earnest money can be forfeited to the seller.