What is a termination option in a Texas Earnest Money Contract?

Texas Option Contract

A termination option is a clause in the standard Texas real estate earnest money contract that gives a buyer the unconditional right to terminate the contract during the option period.  The buyer must pay a fee to the seller for the right to have the termination option.  The length of the option period and the option fee are negotiable between the buyer and the seller.  Earnest money contracts are also called option contracts for this reason.   In Texas, a typical option period is around 10 days and the typical option fee is about $10.00 to $30.00 per day.  However, option fees and option periods are completely negotiable between the buyer and seller.

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