What happens after an offer is accepted on a home in Montgomery County, TX?

Once an offer is accepted on a home in Montgomery County, TX, the contract clock starts. Within three days, the buyer delivers earnest money and an option fee to the title company. The buyer then has a set number of days, called the option period, to do inspections and decide whether to move forward. After that come the appraisal, loan approval, title work, and closing.

Here's what each step looks like, whether you're buying or selling.

When does the contract clock start?

It starts on the effective date, which is the date of final acceptance. Most deadlines in a Texas resale contract are counted from that date, so it's the one to write down.

What happens in the first three days?

Within three days after the effective date, the buyer has to deliver the earnest money and the option fee to the escrow agent named in the contract. In Montgomery County, that's usually the title company handling the closing. The two can be paid separately or together in one payment.

If the third day falls on a weekend or a legal holiday, the deadline moves to the end of the next business day.

Tip for buyers: Before you wire any money, call the title company at a number you already know is real and confirm the wiring instructions by phone. Never trust wiring instructions that only come by email.

What is the option period?

The option period is a set number of days, agreed to in the contract, when the buyer has the unrestricted right to end the contract for any reason. The buyer pays the option fee to the seller in exchange for that right.

To terminate during the option period, the buyer has to give notice by 5:00 p.m. local time on the last day. If they do, they get their earnest money back, but the seller keeps the option fee. If the buyer closes, the option fee is credited toward the sales price.

When do inspections happen?

During the option period. Most buyers hire a Texas licensed home inspector in the first few days so there's time to get repair estimates and negotiate before the option period ends.

If the inspection turns up problems, the buyer can ask the seller to make repairs, give a credit, or lower the price. Anything the two sides agree to gets put in writing in an amendment to the contract.

For sellers: This is the part of the process where a lot of deals come apart. Knowing what an inspection item actually means, and what it costs to fix, keeps the conversation calm. At Pool Realty Group, construction and condition questions go to my husband and business partner Todd, who is a builder. It's a big reason 93% of the time, our sellers close on the very first contract they receive.

What happens with the appraisal and the loan?

If the buyer is getting a mortgage, the lender orders an appraisal to confirm the home's value supports the loan amount. The lender also finishes reviewing the buyer's income, credit, and assets.

For buyers: Don't open new credit cards, finance furniture, or change jobs before closing without talking to your lender first. Changes like that can hold up your loan.

What does the title company do?

The title company researches the property's ownership history, issues a title commitment showing anything recorded against the property, and prepares the closing documents. A survey is also part of most Texas closings. The contract spells out whether the seller provides an existing survey or a new one gets ordered.

For sellers: If you have an existing survey, find it early. If your home is in a MUD, the MUD notice should already be part of the contract.

What happens at closing?

Buyer and seller sign their documents at the title company, sometimes at different times. Once the buyer's loan funds and the deed is recorded, the sale is complete and the buyer gets the keys based on the possession terms in the contract.

Common questions after an offer is accepted

Can a seller back out during the option period? No. The unrestricted right to terminate during the option period belongs to the buyer.

Is the option fee refundable? Not if the buyer terminates. The seller keeps it. If the sale closes, it's credited toward the price.

Who holds the earnest money? The escrow agent named in the contract, usually the title company.

Buying or selling in Montgomery County?

If you're buying or selling a home in Montgomery County and want someone walking you through each deadline, call me at 281.636.5633.