What happens if earnest money is delivered late in Texas?

If earnest money is not delivered within 3 days of the effective date, the seller has the right to cancel the contract by providing written notice to the buyer before they deliver the earnest money. This can result in the buyer losing their right to purchase the property.

How is the effective date determined in Texas real estate contracts?

The effective date is determined by the final date of acceptance by all parties to the contract. This is when all parties have agreed and signed the contract, making it binding. All subsequent deadlines are calculated from this effective date.

What is the typical earnest money amount in Texas?

Earnest money in Texas typically ranges from 1% to 3% of the purchase price, though it can also be a flat amount such as $500 to $2,000. The exact amount is negotiable between buyer and seller based on local market conditions.

How long is the option period in Texas?

Option periods in Texas generally last between 7 to 10 days, though this timeframe is completely negotiable between the parties. During this period, the buyer can terminate the contract for any reason and receive their earnest money back.

Where should the option fee be delivered in Texas?

As of the 2021 TREC contract revision, the option fee must be delivered to the title company, not the seller, within 3 days of the effective date. This matches the same deadline as the earnest money deposit.

What are calendar days vs. business days in Texas contracts?

Texas TREC contracts use calendar days, not business days, for all deadlines. However, there is an exception for earnest money delivery - if the 3-day deadline falls on a Saturday, Sunday, or legal holiday, it extends to the next business day.

How long does it typically take to close in Texas?

The closing date in Texas is typically set for 30 to 60 days after both parties sign the contract. This timeframe allows for inspections, financing approval, and all necessary due diligence to be completed.

Can ListedKit AI help with Texas TREC forms?

Yes, ListedKit AI's intelligent contract analysis can review Texas TREC forms and identify critical dates, deadlines, and key provisions. Ava reads and summarizes TREC documents, providing contextual details in communications and automating deadline tracking for all transaction phases.

How much does ListedKit AI cost for Texas real estate transactions?

ListedKit AI offers transparent, usage-based pricing starting at $9.99 per intake. Your first intake is completely free so you can test the power of Ava and see how our AI streamlines Texas real estate transactions. Go to www.listedkit.ai to learn more about pricing.

Can I try ListedKit AI before committing to a subscription?

Absolutely! Your first intake is completely free - no trial period limitations. Use this free intake to experience how Ava handles Texas-specific requirements, from TREC contract analysis to earnest money deadline tracking. Go to www.listedkit.ai to learn more about pricing.

Texas Real Estate Transaction Timeline: Complete Guide 2025

Understanding Texas Real Estate Transaction Requirements

Texas Transaction Success Tips

Texas offers excellent opportunities for real estate professionals with its standardized TREC forms and clear deadline structure. Work with your brokerage to understand their specific processes and leverage these systems for smoother transactions and happier clients.

Texas real estate transactions operate under specific regulations governed by the Texas Real Estate Commission (TREC). Understanding these state-specific requirements is crucial for real estate professionals managing transactions in the Lone Star State.

The most critical aspect is the "Effective Date" - when all parties have signed the contract. This single date triggers a cascade of deadlines that must be met precisely, including the 3-day earnest money requirement and option period calculations.

Key Texas Requirements

•Effective Date: Determines all subsequent deadlines
•3-Day Rule: Earnest money and option fee delivery deadline
•Calendar Days: All deadlines use calendar days, not business days
•TREC Forms: Standardized contract forms with specific provisions
•Title Company Delivery: 2021 changes require delivery to title company

Interactive Texas Real Estate Transaction Timeline

Texas Real Estate Key Dates to Remember

Success Tips

Stay organized and on track with Texas real estate deadlines. Proper planning and deadline management help ensure smooth transactions and satisfied clients. Use these timeframes as your guide to success.

3

Earnest Money Deadline

Days from effective date

Earnest money and option fee should be delivered to the title company within 3 calendar days of the effective date. Plan ahead if the deadline falls on a weekend or holiday.

7-10

Option Period

Days (negotiable)

Buyer's opportunity to conduct inspections and terminate the contract if needed. This timeframe is negotiable but typically ranges from 7-10 days from the effective date.

30-60

Closing Date

Days from effective date

Target closing date when ownership transfers from seller to buyer. Typically scheduled 30-60 days from the effective date to allow time for financing and inspections.

How ListedKit AI Simplifies Texas Real Estate Transactions

Ava understands Texas real estate law and automatically manages your transaction deadlines, helping you stay organized with important dates like the 3-day earnest money requirement and option period timing.

Automated TREC deadline tracking

Smart contract analysis and review

Team collaboration with Gmail integration

AI-Powered Features for Texas Real Estate

AI-Powered Automation

Ava automatically tracks Texas-specific deadlines and sends timely reminders

Intelligent Contract Analysis

Smart analysis of Texas TREC forms and contract provisions

Automated Timeline Management

Never miss critical Texas real estate deadlines again

Team Collaboration

Seamless communication with Gmail integration for all stakeholders

Earnest Money Tracking

Automated tracking of 3-day earnest money delivery requirement

Option Period Management

Smart monitoring of buyer's option period and termination rights

Closing Coordination

Streamlined management of all closing requirements and documents

Document Intelligence

Ava reads, summarizes, and extracts key details from TREC forms and documents throughout the transaction

What Real Estate Professionals Say

V

Anonymous

"I've been searching for an affordable and comprehensive program to ease the load that we're under. I've found this with ListedKit AI. Very easy to use and rings all the bells and whistles we need!"

C

Clarissa Woodard

Transaction Coordinator, Palmetto Closing

"This has transformed the way coordinators work. The intuitive features and smart automation save me valuable time. I'm excited to see how this will continue to transform my workflow."

Frequently Asked Questions About Texas Real Estate Transactions

Master Your Texas Real Estate Transactions

Don't let Texas real estate deadlines overwhelm your practice. Join real estate professionals who trust ListedKit AI to streamline their transactions, eliminate missed deadlines, and improve client satisfaction.

Legal Disclaimer: This guide is informational only and not legal advice. Real estate laws and practices vary by county and local jurisdiction within Texas. Always consult a licensed attorney in Texas for specific legal guidance regarding your transactions. ListedKit AI provides transaction management tools but does not provide legal advice or replace professional legal counsel.