In a Texas transaction, the buyer wants to waive the option period entirely to make a stronger offer. If the buyer does not include an option period in the contract, what is the effect?
Correct Answer
B) The buyer has no unrestricted right to terminate and must rely on other contract provisions or contingencies
The option period is a negotiable term, not a requirement. If the buyer chooses not to include an option period, the buyer has no unrestricted right to terminate. The buyer would need to rely on other contractual provisions (such as financing contingencies) to terminate.
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Related Topics & Key Terms
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Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
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