Day 16: Contract Basics Review
Video Transcript: Howdy! Welcome to Day 16 of my New Year, New Home Buyers Preparation Series. The topic today is Contract Basics.
Most buyers in Texas use the One to Four Family Residential Contract. The terminology can feel intimidating, so today I’ll explain the most common terms, what they usually look like in North Texas, and where I come in as your Realtor.
Quick note before we start: I’m not an attorney, and this isn’t legal advice. My role is to explain how these terms are commonly used in real estate transactions and to help you understand your options so you can make informed decisions. For legal advice, I always recommend speaking with a licensed Texas attorney.
Earnest Money
This is your good-faith deposit. In North Texas, earnest money is often around 1 percent of the purchase price, though it can range from $1,000 to several thousand dollars depending on price point and market conditions.
I help you choose an amount that’s competitive without unnecessarily tying up cash, and I make sure it’s delivered correctly and on time.
Option Period
This is your inspection window. Option periods are commonly 5 to 10 days in our market.
I advise you on a length that gives you enough time for inspections without weakening your offer, and I help you move quickly if issues come up.
Option Fee
This is the non-refundable fee paid to the seller for the option period. In North Texas, this is often $100 to $300, though it can be higher in competitive situations.
I confirm delivery, track deadlines, and make sure you understand exactly what that fee buys you.
As-Is
“As-is” means the seller isn’t automatically required to make repairs.
I help you interpret inspection results, identify material concerns, and negotiate repairs or credits when appropriate — or advise when walking away may make more sense.
Seller’s Disclosure Notice
This outlines what the seller knows about the property’s condition.
I review it with you, help identify potential red flags, and recommend additional inspections when needed.
Title Policy
Title insurance protects you from ownership issues like liens or claims. Buyer title policies in North Texas often range from $1,500 to $3,500, depending on purchase price.
I coordinate with the title company and help you understand what’s covered before closing.
Survey
A survey confirms property boundaries and easements. If a new survey is required, buyers typically pay $500 to $900.
I review the survey with you and flag items that could affect fences, additions, or future use.
Closing Date
This is when ownership officially transfers. Most transactions close in 30 to 45 days, depending on financing.
I track deadlines, communicate with your lender and title company, and help keep everything on schedule.
The bottom line?
The contract isn’t just paperwork – it’s a series of decisions that affect your money, your risk, and your timeline. My job is to explain the terminology, keep you informed, and advocate for you every step of the way.
If you’re following along with this buyer prep series, check back tomorrow for Day 17, where we’ll cover gathering all the documents needed to buy a home – so you can stay organized and prepared from the start.