After you accept an offer on a Waco-Area Home, the buyer delivers earnest money and any option fee to the escrow agent within three days of the effective date under the TREC resale contract. The option period, inspections, appraisal, financing, and title work then run toward a closing date set in your contract, with a final walkthrough before funding.
What happens after you accept an offer on a Waco-Area Home?
After you accept an offer on a Waco-Area Home, the buyer delivers earnest money and any option fee to the escrow agent within three days of the effective date under the TREC resale contract. The option period, inspections, appraisal, financing, and title work then run toward a closing date set in your contract, with a final walkthrough before funding.
Key Takeaways
- Earnest money and any option fee are due to the escrow agent within three days after the effective date under the TREC resale form, and the deadline moves to the next business day if it lands on a weekend or legal holiday.
- The Texas option period is a contractual termination right, not an automatic statutory one, so the buyer must pay the option fee on time and deliver termination notice by the stated deadline.
- Inspection findings do not force a seller to make repairs, and once the option period ends a buyer generally cannot terminate just because an inspector found problems.
- A low appraisal is not an automatic cancellation; it usually leads to renegotiation, extra buyer funds, a challenge through the lender, or termination only if the contract gives that right.
- A timely title objection gives the seller a 15-day cure period under the TREC title provisions, with the closing date extended as necessary.
What happens in the first week after an offer on a Waco-Area Home is accepted?
Within three days of the effective date, the buyer delivers earnest money and any option fee to the escrow agent, and the option period starts running with inspections. Your executed contract, not a generic calendar, sets every deadline that follows.
I walk my clients through every date on the executed contract the day it's signed, because the effective date, option length, financing deadlines, title deadlines, and closing date are all fields you fill in. Here's the sequence at a glance:
Stage | Who acts | What happens | Where the deadline lives |
|---|---|---|---|
Effective date | Buyer and seller | Contract is fully executed and the clock starts | Executed contract |
Earnest money and option fee | Buyer to escrow agent | Funds delivered within three days after the effective date on the TREC resale form | Contract earnest money and option paragraphs |
Option period | Buyer | Inspections happen; buyer may terminate with timely notice if the option fee was paid | Option period days in the contract |
Repair negotiation | Buyer and seller | Any agreed repairs are put in writing by amendment | Signed amendment |
Appraisal and underwriting | Buyer's lender | Lender reviews the property value, buyer file, and insurance documents | Financing terms and lender timeline |
Title work | Escrow agent and buyer | Title commitment is reviewed and objections are delivered on time | Title objection deadline in the contract |
Final walkthrough | Buyer | Buyer verifies condition, agreed repairs, included items, and vacancy | Shortly before closing |
Closing and funding | Closing agent | Documents are signed, good funds are received, and the sale is completed | Closing date in the contract |
How soon is earnest money due?
Under the TREC One to Four Family Residential Contract (Resale), the buyer must deliver earnest money and any option fee to the escrow agent within three days after the effective date. If that deadline falls on a Saturday, Sunday, or legal holiday, it moves to the next day that isn't one.
Earnest money isn't required to create a valid Texas contract, but once the contract is executed it's a buyer-performance obligation. Texas REALTORS® notes that if the buyer misses the deadline, the seller may have termination or other remedy rights. Sellers, that's your first checkpoint: confirm with the escrow agent that the funds landed.
The money isn't a fee. At closing, the TREC contract applies earnest money first toward the buyer's cash down payment, then toward other amounts due.
How does the Texas option period work?
The option period is a contractual right to terminate, not an automatic statutory window. If the buyer pays the agreed option fee on time, the TREC contract language lets the buyer terminate by giving notice within the number of days written into the contract.
Counting matters. In the standard Texas REALTORS® explanation, Day One is the day after the effective date, and the notice must be delivered by the stated deadline, commonly 5 p.m. local time on the last option day when the contract uses that deadline. A notice that goes out an hour late can cost a buyer the right entirely.
Don't treat the option period as a free inspection period. The fee has to be paid on time and the notice has to be timely, or the right to terminate this way doesn't exist.
What happens if the inspection finds problems?
Nothing is automatic. Inspection findings don't require the seller to make repairs, and after the option period ends a buyer generally can't terminate just because an inspector found problems. Any repair deal has to be written up under the contract's provisions, usually by amendment.
During the option period, buyers choose their own inspectors, licensed by TREC or otherwise authorized by law, and the contract requires the seller to permit reasonable access. Most buyers start with a general inspection. Depending on what turns up, they may add specialists for foundation, HVAC, roof, plumbing, sewer, structural, pool, or environmental concerns.
Specialist visits take time to schedule, so it pays to book them on day one. How much to ask for, and whether to ask at all, depends on the findings and the rest of the deal. That's a judgment call I work through with each client before the option clock runs out. If you're on the selling side, my step-by-step guide to selling a home in Waco covers how to prepare for this stage before you list.
What happens between the option period and closing day?
Appraisal, underwriting, and title work run at the same time, and any one of them can move your closing date. The exact date is contractual, so a delay on any front means checking what the contract allows before anyone assumes anything.
How do the appraisal and financing fit in?
On a financed purchase, the appraisal runs through the buyer's lender, not through the buyer or the agents. Before funding, the lender generally needs completed underwriting, appraisal review, insurance documentation, title clearance, and final closing disclosures.
A low appraisal isn't automatically a cancellation. The practical responses depend on the contract and the lender:
- Renegotiation of the price between buyer and seller.
- Additional buyer funds to cover the gap.
- A challenge to the appraisal through the lender.
- Termination, but only if a specific financing or appraisal contingency in your contract gives that right.
A cash purchase can skip lender underwriting and the appraisal, which removes two common sources of delay. Financed timelines vary with the lender and the property, so I won't hand you a one-size-fits-all number of days. Buyers who want to know how much cash they'll need at the table can start with what Waco buyers actually need in cash to close.
What does the title work involve?
Once the contract is executed, the escrow agent and title company begin the title process, and the buyer should review the title commitment and any survey-related materials promptly. Objections have to be delivered by the deadline in your contract.
If the seller receives a timely objection, the TREC title provisions allow a cure period of 15 days after the objections are received, with the closing date extended as necessary. If the problems aren't cured, the buyer may have the termination rights the form specifies.
Sellers, that means a title issue can push your closing date even when everything else is on track. Respond to objections quickly and keep your agent in the loop.
What if the lender or title work isn't ready by the closing date?
The closing date can shift because of title objections, lender requirements, repairs, or other agreed extensions, but a shift needs to be written down. If a lender is running behind, I'd rather we talk about an amendment with the other side early than have everyone surprised on closing day. What the contract allows in your situation is exactly the kind of question I walk my clients through, and the answer depends on the specific dates and terms you signed.
What happens at the final walkthrough and closing?
The final walkthrough is a pre-closing verification, not a second inspection, and closing is when the closing agent receives good funds and completes the sale. Both steps are about confirming that what was promised is what's delivered.
What should buyers check at the final walkthrough?
Use the walkthrough to confirm four things:
- The property is in the condition the contract requires.
- Agreed repairs appear complete.
- Included items, like fixtures or appliances named in the contract, are still there.
- The seller has vacated as required.
If something is off, raise it immediately with the agents, the title and escrow company, and the lender if it could affect closing. Waiting until after you've signed leaves you with far fewer options.
Sellers, finish agreed repairs before the walkthrough, leave the included items, and move out on time. A clean handoff is the best way to keep a closing on schedule.
What happens on closing day?
At closing, the buyer pays the sales price in good funds acceptable to the escrow agent, and the earnest money is credited under the contract. Your closing agent handles the signing, the funds, and the final paperwork.
Every transaction is a little different, and an offer on a Waco-Area Home that looks simple on paper can still hit a snag in title or financing. That's why I like to map the dates before the first inspection is scheduled. If you're buying for the first time, my first-time home buyer guide for Waco covers the steps leading up to the offer.
FAQ
How soon do I need to send earnest money after accepting an offer in Waco?
Under the TREC resale contract, the buyer must deliver earnest money and any option fee to the escrow agent within three days after the effective date. If the third day falls on a weekend or legal holiday, the deadline moves to the next day that isn't one. Check the exact fields in your executed contract.
When does the Texas option period start and end?
Day One of the option period is the day after the effective date, and it ends on the final day stated in your contract. Termination notice must be delivered by the stated deadline, commonly 5 p.m. local time when the contract uses that deadline. The buyer must also have paid the option fee on time to use the right.
Can I back out of a Waco home purchase after the inspection?
Generally not just because of inspection results once the option period has ended. The buyer can terminate under the option period only with a timely notice and a paid option fee. After that, termination depends on other contract rights, such as a financing contingency or title provisions, so check your specific contract before assuming you can walk.
Who schedules the appraisal, and what happens if it comes in low?
On a financed purchase, the appraisal runs through the buyer's lender. A low appraisal is not an automatic cancellation. The parties may renegotiate, the buyer may add funds, the appraisal may be challenged through the lender, or the buyer may terminate if a specific contract contingency allows it.
What happens if the lender is not ready by the closing date?
The closing date is contractual, so it generally can't just slide without a written agreement. Lender requirements are one of the things that can lead to an agreed extension. If it looks like underwriting is running behind, talk to your agent early so an amendment can be discussed before the deadline arrives.
In short, accepting an offer starts a series of contract deadlines that are easy to manage when you know them and costly when you don't. I walk my clients through the whole sequence, from the first earnest money deadline through the closing table. If you're about to accept an offer, or you're thinking about writing one, schedule a consultation with me and the WestLand Realty Group team and we'll go through your timeline together.
Equal Housing Opportunity. Real estate brokerage services are regulated by the Texas Real Estate Commission; the Consumer Protection Notice and Information About Brokerage Services are available on request. This article is general information, not legal, tax, or financial advice. Confirm your own dates and numbers with your closing agent, tax advisor, or lender.
