Home Buying in 75025>Question Details

A Lu, Other/Just Looking in Dallas, TX

Question on Option Money for Texas Contract

Asked by A Lu, Dallas, TX Wed Feb 26, 2014

Per TREC - Option money is due to the seller within 48-hours (two days) of contract execution. This is not two "business" days.

If the buyer is remote, what other acceptable means are available to get the option money to the seller within 48-hours ? Electronic check issued by buyer from his bank to the seller could take longer than 48-hours.

Thanks in advance!

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Answers

13
Talk with your Realtor and NOT us.
1 vote Thank Flag Link Sun Mar 2, 2014
Wiring the earnest money is definitely the best bet.
In this market, it's wise to have your ducks in the row and time allotted to take care of these items so that you don't get in a bind, miss a deadline and miss out on the home due to a another buyer being ready and "beating you to it". Talk with your Realtor to avoid hurdles like this and plan, plan, plan.

-Amy S. Arey, Realtor
Halo Group Realty, LLC
214.901.1341-Cell
http://www.Aarey.HaloAgent.com
0 votes Thank Flag Link Fri Jul 18, 2014
If you cannot deliver a check to the seller, then wiring the money would be the best bet. You don't want to miss deadlines on the contract!
0 votes Thank Flag Link Tue Jun 17, 2014
As of June 1st 2014, option money is now due to the seller within three calendar days!

https://www.texasrealestate.com/advice-for-texas-realtors/ar…
0 votes Thank Flag Link Thu Jun 12, 2014
If you cannot deliver a check to the seller, then wiring the money would be the best bet. You don't want to miss deadlines on the contract!
0 votes Thank Flag Link Tue Jun 10, 2014
First of all, you should definitely speak with your Realtor. Second, whatever method is used to transmit the earnest money should be one that can be verified--such as a trackable FedEx signature. However, even if a third party service--such as FedEx or a bank--guarantees delivery by the deadline and misses that deadline, your option money has not been delivered and you would not have the unrestricted right to terminate.

In instances of representing out-of-town buyers, I've had buyers use Western Union, bank wire, and FedEx to transmit funds for an option fee.

Vince Leibowitz
Nathan Grace Real Estate
972.876.6175
vince@nathan-grace.com
0 votes Thank Flag Link Sun Mar 2, 2014
Earnest Money and Option Fee are similar

TREC rules covering this section of the act state: "Unless a different time to deposit money is expressly agreed upon in writing by the principals to the transaction, 'reasonable time' as used in this section means by the close of business of the second working day after execution of the contract by the principals." (Section 535.159(i))

The promulgated contract form in paragraph 5 covering Earnest Money has no wording about time of delivery (unlike paragraph 23 for the Option Fee). However, "reasonable time" as quoted for Earnest Money has been long established as 2nd business day after execution.

Option Fee delivery, while similar in nature (it is a contract to grant exclusive right to buy to the buyer for a period of time - and needs to be paid for), does state exactly that the fee must be delivered within 2 days. It doesn't say "business" days, just days. While it can be delivered to the agent for the seller or the seller, it should not be delivered to a title company or escrow agent.

This confuses some people, because they think they have 2 business days for the Option Fee delivery. Who can say how litigation will turn out? An attorney is your best bet, if you're confused.

Best Practice:
deliver Earnest Money to escrow agent by close of business the 2nd business day after Execution
deliver Option Fee to seller's agent with the contract but not later than 2nd calendar day after Execution

If Buyer is remote and cannot deliver funds, you should consider these possibilities:
have Buyer send cashier's check by overnight or wire transfer
in special provisions document the delivery method for the option fee
have Buyer's agent pick up and deliver check from local bank
Web Reference: http://www.SumnerRealty.com
0 votes Thank Flag Link Sun Mar 2, 2014
You want to check with your broker or lawyer.
You don't want to mess this up.
https://www.youtube.com/watch?v=ne2M0n8epPM

FEDEX
UPS
US Mail overnight delivery.
Friend, family, realtor buys the option money for you and you reimburse them.
Wire transfer

Lots of options.....happens all the time.
0 votes Thank Flag Link Wed Feb 26, 2014
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
I would suggest communicating with your realtor and I'm not sure why you are doing this yourself.

You can overnight the option check but most importantly you need to have communication with the seller.

Good luck,
Susie Kay, RealtorĀ®
GRI, CHMS, SFR
Residential/Commercial/Investment
English-Indonesian-Hokkien
------------------------------------------------------------------
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
469-371-2899
susie_k@att.net

http://www.dfwdreamhomes.net

Servicing your real estate need is my priority!
0 votes Thank Flag Link Wed Feb 26, 2014
Yes 2 days period on option days. We normally UPS or Fedex option money. If this is not possible the time period can be extended.


JToddRealty@gmail.com
Web Reference: http://ToddHomesForSale.com
0 votes Thank Flag Link Wed Feb 26, 2014
It is best for the buyer to coordinate with the seller through real estate agents, and ensure you get the agreement in writing!
0 votes Thank Flag Link Wed Feb 26, 2014
You could do paypal over fedex, or you can extend the deadline in special provisions.
0 votes Thank Flag Link Wed Feb 26, 2014
Where is our Realtor ? Who should be providing you assistance.

Several options:
1. PayPal
2. Fed Ex
3. Ups

2 Days - You are correct NOT business days



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0 votes Thank Flag Link Wed Feb 26, 2014
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