Have a blessed day!
If the buyer just decides not to buy it could very well result in the total loss of their earnest money. If the home does not appraise or if there are financing problems a buyer can get out if they are within the time parameters set up in the purchase contract. Know your dates and deadlines or it can cost you... in a purchase contract time is of the essence!
REALTORÂ® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
Receiving the seller's disclosure per the contract date
Getting financing approved for the terms spelled out on the contract.
Receiving HOA documents and not liking something in them
Not being able to get homeowner's insurance for the home
The home not appraising for the contract amount
Having objections to the title work or survey
and of course the obvious, getting denied for the loan within the time period spelled out on the 3rd party financing addendum
If you have a real estate agent I would ask that person. If not, then you may need to seek legal advice for a complete review of what is in the contract.
Jack Gillis, M.B.A., J.D.
Jack Gillis Realty Advisors
Nathan Grace Real Estate, Broker
5619 Dyer Street | Suite 100
Dallas, TX 75206
The typical TREC 1-4 contract has provisions for default.
Could be buyer would loose option and earnest money after option period.
Typically though there is some contingency in financing.
There could be other outs with survey and title and HOA.
That's why you need to refer back to your contract.
In answer to your question the answer is yes, no or maybe. There are so many variables that we can not cover them all. It is best you find someone who real knows Texas real estate and give them all the facts and then they may be able to give you some good feed back.
If in doubt and you are concerned about your legal rights then take your contract to an attorney and ask for thier help.
Best of Luck .. Bruce
It can also be a problem for either party; it depends on how the Contract is written:
There is no Pre-printed, Standard, Cookie-Cutter LEASE/OPTION Contract; you can write it any way you want;
and therein lies the problem.
You would have to decide now, what you want to pay 2-5 years from now; and agree on it!
Good luck and may God bless
Usually, the buyer will pay a certain amount to the seller to allow the buyer to get inspections done to the property-- once the option period ends and the buyer wants to continue the purchase - then earnest money can be placed with a title company at that time.
Your questions were not specific - but yes if they decide not to buy the property during the option period - you may received the option money and they can back out of the contract.
Again- if you are not represented by a realtor-then contact an attorney.
Best of luck