Austin TX Real Estate - Hill Country Austin Lakeway Homes for Sale: All Texas Contracts are As Is... but You Can Still Have an Inspection Contingency

All Texas Contracts are As Is... but You Can Still Have an Inspection Contingency

How is my contract contingent upon inspections when I have to check a box that states I'm accepting the property in its "as is" condition?

One of the most important things to know when buying a house in the state of Texas is that every single sale is an "as is" sale.  Most people think only foreclosures and short sales are as is, but that's simply not true.

In the standard Texas, promulgated contract, there are two options to check.  One option is to accept the property as is, while the other option is to accept the property as is as long as you do this and that repair.  The problem with the second option is you don't know what repairs need to be done until you have inspections, so this option is very rarely, if ever, checked.  Either way, both options state as is...

However, in Texas, we have this thing called the Termination Option, commonly referred to as The Option Period.  This is a negotiabe period of time, normally 5-10 days, where the buyer offers the sellers so much money, typically around $100-250 depending on the amount of days they're asking for, to have the right to run inspections and then back out of the contract for any reason they want.  Essentially, the buyer buys the right  to terminate the contract for any reason with no explanation. Maybe they didn't like the inspection and it scared them. Maybe the seller wouldn't agree to any repairs that the inspection turned up. Maybe the buyer woke up on the wrong side of the bed and decided they didn't want to buy the house anymore. It doesn't matter as long as it's within this period of time. 

If the buyer utilizes the Option Period and Opts Out, the buyer retains the earnest money. The only money the buyer is out is the Option Fee and the money spent for inspections.  The form to terminate the contract is only signed by the buyer, and the seller does not have to release the buyer as it's automatic.

The Option Period is how you can buy a house "as is" but still be able to run inspections and ask the sellers for help with specific repairs.

If you're looking to buyer or sell a house in the Austin TX area, please contact me today, and we'll go over your goals together. I can help you put the entire Texas contract into perspective.

**Are You Packed Yet?**

donna harris Realtor Austin TX blog

Donna Harris, REALTOR®
RE/MAX Austin Skyline

Austin TX Real Estate and the surrounding areas of Lakeway, Bee Cave, West Lake Hills, Cedar Park, Round Rock, Spicewood, Circle-C, Steiner Ranch, and everywhere in between... Hill Country Austin TX Real Estate and beyond. Whether you're buying or selling an Austin home, I'll be with you every step of the way. 

For real time Austin TX listings, click here.

** #1 Agent in my Office for all of 2008 **

Copyright© 2011 By Donna Harris, All Rights Reserved. You may re-blog with links back to this post.
* All Texas Contracts are As Is... but You Can Still Have an Inspection Contingency * was first published on

Comment balloon 7 commentsDonna Harris • February 10 2011 01:30PM


Hi Donna. Great explanation on your part. As Is still does mean subject to your own inspections within the Option term or the specific problems you find up front, NOT just for older or investment properties you purchase. GREAT thoughts!!

Posted by Gary Woltal, Assoc. Broker Realtor SFR Dallas Ft. Worth (Keller Williams Realty) almost 10 years ago


Thanks for sharing a very informative post, well said.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) almost 10 years ago


Great information.  Should be required reading for all agents.  So many just do not get paragraph 7.

Posted by Richard Weeks, REALTORĀ®, Broker almost 10 years ago

Gary, Thanks!

Lou, You'll be prepared when moving here!

Richard, And did you know there are now 9 pages to our contracts??  Ridiculous!!

Posted by Donna Harris, Realtor,Mediator,Ombudsman,Property Tax Arbitrator (Donna Homes, powered by JPAR - almost 10 years ago

It's very annoying when fellow Realtors type.. "PENDING INSPECTION" Arggh! Hello! We have an option period folks! Thanks for p osting this. I hope it goes VIRAL in Texas!

Posted by Greg Nino, Houston, Texas (RE/MAX Compass, formerly RE/MAX WHP) almost 10 years ago

$100-$250 wow.  Around here I've seen as low $1.00.

I usually tell my buyers $50.  That's it.

Posted by Angelia Garcia (Pure Realtors) almost 10 years ago

Greg, They do that there?  Crazy!

Angelia, As a listing agent, I would never accept $1. That is only acceptable on short sales as the lenders don't want to see money going to the seller.  $50 is only ever acceptable under $100k. The sellers deserve a nice dinner if the buyers back out.

Posted by Donna Harris, Realtor,Mediator,Ombudsman,Property Tax Arbitrator (Donna Homes, powered by JPAR - almost 10 years ago