After you accept an offer in East Texas, the TREC contract sets an effective date that starts the clock on the option period, inspections, appraisal, and title work. The sale is not final at signing, it becomes official only when the title company funds and records the deed at the county clerk's office.
What does "under contract" actually mean for an East Texas home seller?
Once both parties sign the TREC One to Four Family Residential Contract (Resale) and the last signature is communicated, your home is under contract and an "effective date" is set. That effective date starts the clock on every deadline in the deal, the option period, earnest money delivery, financing contingencies, and your closing date. The sale is not final at that moment, and it's not final when you sign closing documents either. In Texas, you're truly sold when the title company funds the transaction and the deed is recorded at the county clerk's office.
Key Takeaways
- The TREC contract's "effective date", the date the last party signs and communicates acceptance, starts every contractual deadline, including the option period and earnest money delivery window.
- Texas buyers typically have an unrestricted right to terminate during the option period (commonly 5–10 days in many East Texas deals) by giving written notice before 5 p.m. on the last day; if they do, earnest money is refunded but the option fee goes to the seller.
- The buyer must deliver both earnest money and the option fee to the title company within 3 days of the effective date, missing that deadline costs the buyer their unrestricted termination right.
- Inspection reports are not mandatory repair lists; what gets fixed is governed entirely by what buyer and seller agree to in a written TREC Amendment.
- In Texas, "closing" (signing documents) and "funding" (the title company receiving lender funds and recording the deed) are two separate events, the sale is not final until the file is funded and disbursed.
What happens in the first 72 hours after you accept an offer in East Texas?
The first three days are deceptively busy. Most of the activity is on the buyer's side, but you need to know what's happening so nothing surprises you.
The moment the contract is executed, your listing status changes, typically to "Option Pending" in the local MLS, which covers most of East Texas through the Greater Tyler Association of REALTORS® and affiliated boards. Showings largely stop. Your home is spoken for, at least for now.
Within those first three days, the buyer is required to deliver both the earnest money and the option fee to the title company named in the contract. According to Texas.gov's guidance on TREC contract deadlines, if the buyer misses that three-day window, they lose their unrestricted right to terminate under Paragraph 5B of the contract, though the contract itself can still move forward without an option period. That distinction matters to you as the seller: a buyer who never secured an option period has a much harder time walking away cleanly.
At the same time, the buyer's lender begins processing the loan file. Texas buyer guides updated in April 2026 describe lenders commonly ordering the appraisal within the first week under contract, though timing depends on the lender's pipeline and the loan type.
For the full picture of how this fits into your selling journey, the East Texas Home Selling Process: Listing to Sold walks through every phase from the moment you list.
How does the option period work and what should you expect during inspections?
The option period is the most misunderstood part of a Texas home sale, and it's the stage where sellers feel the most uncertainty. Here's how I explain it to every seller I work with.
What the option period actually is
Under Paragraph 5B of the TREC contract, the buyer pays an option fee in exchange for an unrestricted right to terminate the contract for any reason during the negotiated option period. Any reason. No explanation required. The Texas Real Estate Research Center's option period guidance, last updated August 2026, describes these periods as commonly ranging from 5 to 10 calendar days in many Texas deals, though the exact length is negotiated and East Texas contracts can be shorter or longer depending on what both parties agree to.
During those days, the buyer is doing their due diligence, and for East Texas properties, that often means more than just a general home inspection. Rural properties outside Tyler, Longview, Jacksonville, or Nacogdoches frequently involve separate septic and well inspections. Older homes may need foundation or roof specialists. Buyers typically schedule everything as early in the option period as possible to leave time for negotiations.
What happens with the inspection report
This is where I want to be direct with you: an inspection report is not a legally mandated repair list. As Texas REALTORS® guidance makes clear, what gets repaired is governed entirely by what you and the buyer agree to in a written TREC Amendment, not by what the inspector wrote down. The buyer can ask for repairs, a price reduction, closing cost credits, or some combination. You can agree, counter, or decline. For guidance on where to focus your preparation before you even get to this stage, I'd point you to my post on where to focus your energy as an East Texas seller.
One important wrinkle for financed buyers: some repairs are lender-driven rather than buyer-driven. FHA and VA loans in particular may require that certain safety or habitability items be addressed before the lender will fund. Those aren't optional if the buyer is using that loan type, so it's worth knowing upfront what your home's condition might trigger.
If you and the buyer reach an agreement, any repairs or concessions get documented in a signed TREC Amendment. If you can't reach agreement and the buyer is still within the option period, they can send written notice of termination before 5 p.m. on the last day. Their earnest money comes back to them. Your option fee stays with you. And you're back on the market.
After the option period expires without termination, the buyer's ability to walk away narrows significantly. From that point, they can only terminate based on specific contractual contingencies, a financing denial, a title defect, or other clauses written into the contract.
What does the title company do, and when is the sale truly final?
The title company's role from contract to closing
In Texas, the title company is the hub of the transaction once you're under contract. According to the Texas Department of Insurance, title companies receive and hold the earnest money and option fee in escrow, order a title search on your property, and issue a title commitment outlining the conditions that must be met before they'll issue a title insurance policy.
For East Texas sellers, that title search sometimes surfaces issues that need attention before closing, existing liens, judgments, or, very commonly in this region, questions around mineral rights and oil and gas leases. East Texas has deep oil and gas history, and many titles in Smith, Cherokee, Gregg, and Rusk counties reflect severed mineral rights or pre-existing leases. The title commitment will flag these. In most standard residential sales, these are handled through routine title exceptions and don't derail the closing, but your title officer and I will walk you through anything specific to your property.
Rural properties also sometimes require additional affidavits before closing, heirship statements, marital status declarations, or property-use documents. East Texas title offices handle these regularly; it's just a matter of gathering the right paperwork in time.
The title company will also ask you for payoff information on any existing mortgage, HOA contact details if applicable, and documentation for any liens or judgments that need to be cleared. Getting that information to them quickly keeps your timeline on track.
Signing is not the finish line, funding is
Here's the distinction that catches sellers off guard: in Texas, "closing" and "funding" are two separate events. You'll sign your deed and closing documents at the title office (or with a mobile notary if that's arranged). But the Texas Department of Insurance's closing guidance is clear that the transaction is not complete at that point.
The sale becomes final when the buyer's lender wires funds to the title company, the title company disburses proceeds to you and all other parties per the settlement statement, and the deed and deed of trust are submitted for recording at your county clerk's office. That's what "funded and disbursed" means. That's when you're paid. That's when the buyer gets keys.
I tell every seller I work with: you're sold at funding, not just at signing. That distinction matters for when you schedule your move-out, when you transfer utilities, and when you hand over keys. Plan around funding day, not signing day.
For financed purchases, Texas buyer and seller guides updated in 2026 describe the typical contract-to-closing window as roughly 30 to 45 days, depending on financing type, appraisal turnaround, and how smoothly option-period negotiations go. Cash deals can move faster since they skip mortgage underwriting, but they still depend on title work being complete and any contractual timelines being met.
| Stage | Approximate Timing from Effective Date | What's Happening |
|---|---|---|
| Effective date set | Day 0 | Contract executed; all deadlines begin; listing status updated |
| Earnest money and option fee delivered | Within 3 days | Buyer delivers funds to title company; option period begins |
| Inspections | Days 1–10 (option period) | General inspection, plus septic/well/specialty if applicable |
| Repair negotiations | During option period | Buyer requests repairs or concessions; TREC Amendment if agreed |
| Appraisal ordered and completed | Days 5–20 (varies by lender) | Lender's appraiser visits property; report goes to underwriting |
| Title commitment issued | Days 10–25 | Title company clears liens, flags exceptions, requests seller payoffs |
| Underwriting and loan approval | Days 15–35 | Lender reviews full file; issues clear to close |
| Closing (signing) | Around Day 30–45 | Seller signs deed and documents at title company |
| Funding and disbursement | Same day or next business day after signing | Lender wires funds; title company disburses proceeds and records deed |
Every deal is different. Rural properties, estate situations, and older homes with deferred maintenance can add time. The table above reflects a typical pattern, not a guarantee for your specific transaction.
Frequently Asked Questions
What does it mean when my East Texas house is "under contract", can the buyer still back out?
Under contract means both parties have signed the TREC contract and the effective date has been set, but the sale is not yet final. During the option period, the buyer can back out for any reason without penalty beyond losing their option fee, which stays with you. After the option period ends, the buyer's ability to terminate is limited to specific contingencies written into the contract, such as a financing denial or a title defect, so your position as seller becomes considerably stronger once that window closes.
How long is the option period in Texas and what happens during those days?
The option period length is negotiated between buyer and seller and written into the TREC contract, there is no fixed statutory number. Industry guidance updated in 2026 from the Texas Real Estate Research Center describes many Texas deals using option periods in the 5-to-10-day range, though East Texas contracts can be shorter or longer depending on the deal. During those days, the buyer typically completes inspections, reviews the property's condition, and decides whether to proceed, negotiate repairs, or terminate.
If the buyer cancels during the option period in Texas, do I get to keep their earnest money?
No, if the buyer terminates in writing before 5 p.m. on the last day of the option period, their earnest money is refunded to them. What you keep is the option fee, which is nonrefundable and released to you as the seller. Per the TREC One to Four Family Residential Contract, that's the tradeoff: the buyer pays for the right to walk away cleanly, and that payment is yours regardless of outcome.
When is my East Texas home sale officially final, at signing or when the title company funds?
The sale is final at funding, not at signing. According to the Texas Department of Insurance, the transaction is complete when the buyer's lender sends funds to the title company, the title company disburses proceeds and pays off your existing mortgage, and the deed is submitted for recording at the county clerk's office. Signing the closing documents is a required step, but it is not the final one, plan your move-out and utility transfers around funding day.
What happens if the appraisal comes in low on my East Texas home after we're under contract?
A low appraisal does not automatically end the deal. Under the TREC Third Party Financing Addendum, the buyer's options depend on the specific financing contingency language in their contract, they may be able to terminate if the lender won't approve the loan at the appraised value, or they may need to make up the difference in cash. In practice, a low appraisal often triggers a renegotiation between buyer and seller on price or terms. Your specific situation depends on how the contract is written, which is exactly the kind of conversation to have with me before you're in it.
What repairs am I required to make after the inspection in a Texas home sale?
You are not automatically required to make any repairs based on an inspection report alone. What you agree to fix is governed by what you and the buyer negotiate and document in a signed TREC Amendment, nothing more. Buyers can request repairs, concessions, or a price adjustment; you can agree, counter, or decline. The one exception is lender-required repairs: for FHA or VA loans, certain safety or habitability items may need to be addressed before the lender will fund, and those are harder to negotiate around if the buyer is using that loan type.
Accepting an offer is a big moment, but the work between contract and closing is where deals are made or lost. I walk my clients through every step of this process, from the option period through funding day, so nothing catches them off guard. If you're getting ready to sell in East Texas and want to know exactly what your timeline will look like, let's talk.
Schedule a consultation with Julie Woods today.
Equal Housing Opportunity. Julie Woods, Broker (Active), regulated by the Texas Real Estate Commission (TREC). This article is general information only and does not constitute legal, tax, or financial advice. Confirm your specific costs, timelines, and contract terms with your title company, tax advisor, or lender.