Texas Purchase Contract Guide

It’s a set number of days, usually 5 to 10, when you can back out of the contract for any reason. You pay a small option fee to the title company for that right. Most buyers use it for inspections and repair negotiations. Notice has to be given by 5:00 p.m. on the last day.

If you terminate within the option period, or under another right in the contract (like the financing addendum’s Buyer Approval), your earnest money is refunded. The option fee is not. If you back out later without a contract right, the seller may be entitled to your earnest money.

It’s negotiable. Many San Antonio deals use around 1% of the price, and competitive offers sometimes go higher. It’s credited toward your down payment and closing costs at closing.

It’s TREC form 40-11, attached when you’re using a loan. It lists the loan type and terms and gives you a set number of days (Buyer Approval) to get approved. If you can’t, you can terminate with your lender’s written statement and get your earnest money back.

In much of Texas, including San Antonio, the seller customarily pays for the owner’s policy, but it’s negotiable. Paragraph 6A shows who pays on your contract.

With FHA and VA loans, the appraisal clause in the financing addendum means you aren’t obligated to buy if the home appraises below the agreed value. With any loan type, a low appraisal can affect Property Approval. Your options are usually to renegotiate the price, cover the difference in cash, or terminate if a contract right allows it.

The date the contract is fully signed and accepted, filled in by the broker on the last page. Almost every deadline in the contract counts from it, so send it to your lender right away.

The 20-19 resale contract, required since July 1, 2026, adds a Seller’s Water Disclosure (7I), a new brokerage compensation paragraph (12B), a smart-devices handoff (10B), a government reporting paragraph (20B), fuller contact blocks in Notices (21) and a regrouped addenda list (22). It’s 12 pages instead of 11.

TREC form 39-11 changes a signed contract, most often after the inspection: seller repairs, a seller credit toward your closing costs, a new closing date or more time for loan approval. Both sides sign it, and I need a copy right away because it can change your loan numbers.