Is seller allow to deny the buyer an option period?

Dear Sue,

Option period/option fee is negotiable. It is recommended to have it especially for your Buyer.

Regards,
Cagdas Acar
Msc PSA VLB Realtor
832-283-1091
acarster@gmail.com

Sure he can, everything on the contract is negotiable except the names and legal description. But why would they? More details would have been nice. I have had properties under contract that were for investors where there was no option period so the buyers had to do the inspections prior to making the offer but it has been extremely rare.

I am actually shocked by the answers I am seeing. Absolutely NOT. The seller is not allowed to deny the buyer an option period. EVER! That being said...some buyers may decide to forgo the option period to better position themselves among the competition. But should always be a decision made by the buyer. Not the seller. The seller can not deny the buyer an option period!

The short answer is yes. It is a negotiated item in the contract that the seller does not have to agree to. You as the buyer must decide if you want to continue without it or not enter into the contract to begin with. Without the option period, if you terminate the contract, even for just cause, you will lose your Earnest Money Deposit.

Hi Sue,
It is possible to not have an option period but both seller and buyer need to agree to that. The seller cannot impose it.
If you enter in such contract without option period, your earnest money is at risk if you end up not purchasing the house. I.E. you can loose your earnest money.
Best

The option period is negotiable so yes they are able to do that but that doesn't affect your clients ability to have an inspection. Also there are several other ways the contract could be dissolved under the proper circumstances.

Yes, the seller is, but it is very rare that I have seen this.

While the seller doesn't have to allow an option period, I would recommend being very wary of a seller who is discouraging your normal due diligence and an independent inspection during the option period. While there are other "outs" in the contract, most buyers should be very concerned with the seller's motives in this situation. Possibly you could request a shorter option period to alleviate the seller's concerns.

It is negotiable. Many corporate sellers don't allow 'option periods' but allow 'inspection periods'. Since the corporate addenda are not promulgated forms, you must read them carefully. You should still have an inspection. If there are very serious unexpected issues, there are usually other 'outs'.

Sue,
All terms in the contract are negotiable including the option period.

Hi Sue,

There are many terms in the sales contract that are negotiable, the option period being one of them.

The Option Period gives the buyer the unrestricted right to terminate and you, as the buyer, pay the sellers a negotiated amount for a negotiated number of days to take their home off the active market. (This does not prevent them from taking a back up offer however).

As a buyer you would still want to do all your due diligence on the property and negotiate repairs, if necessary. There are several other "outs" for a buyer (financing approval, failure to furnish documents on time, etc.). Read through everything carefully and consult with an attorney if any questions arise.

Most, if not all, relocation companies do not offer an Option Period. They do give time for inspections and provide a clause for the negotiation of repairs.

If the seller doesn't want an option period then you have to make the decision if that is ok with you or if you want to move on to another property.

Hope this helps!

All terms of a contract are negotiable. As stated before there are other terms in a sales contract that could make the contract terminate. All contracts should be reviewed carefully before signing.

"Paragraph 23. Termination Option" is negotiable as is all the other terms contained in a contract.
Even without this paragraph in place a buyer can still inspect the property by licensed inspectors of the buyer's choice, submit contract amendments of requests for repairs or adjustments to the property condition, and negotiate with the seller for repairs and adjustments. You just don't have the "unrestricted right to terminate" the contract without paragraph 23 activated. If you are confident about sticking with purchasing the property, then ask yourself if you need to have this termination clause. Obviously the seller is confident he wants to sell to you by his gesture he does not want a termination clause. Keep in mind too that there are at least 16 events named in the contract that "if" they occur the contract terminates automatically, unless the parties renegotiate due to those events. Read your contract and notice how often termination is mentioned within the paragraphs. Paragraph 23 is not your only out.
Hope this helps you.
If you have more questions feel free to contact me.