Legal Question in Real Estate Law in Texas

TREC Option $$$ / Effective Date of Contract

I made an offer on a residential single family property in Austin that was accepted 7/24/07. To get the Contract, valued at $225K, I had to put $5K down as Option Money (Sect. 23) within 2 days of the Effective Date of the Contract (signed by me first, then Seller on 07/24/07), giving me the right to terminate within 1 day, and waive the financing conditions. I intended to tear down and build on the property. The Option Money was deposited at the title company within 2 days, then given to and cashed by the Seller. I no longer wish to buy the property. My out may be the Seller provided an unsigned Seller�s Disclosure (required within 3 days of effective date of Contract), and I have not signed receipt thereof. Today makes 25 days since my offer, and I�m wondering if I have recourse to get my $5K option money back by notifying the Seller�s agent I withdraw my offer, waiting two days, then notifying him subsequently the effective date of the Contract is when all documents are signed. Might this thereby postdate the effective date, allowing me to claim the option money was cashed without a valid Contract and therefore due me? Other ideas to recoup the $5K option money?


Asked on 8/21/07, 7:28 am

1 Answer from Attorneys
Jason Charles Ciarochi Ciarochi and Associates, PLLC

Re: TREC Option $$$ / Effective Date of Contract

Whatever issues you raise on this contract need to be raised immediately. Every day is another day where the seller beleives that its interests are tied up (that it does not have to show the house and that you are buying)... Also, I am sure that seller is going to want to keep the $ 5 K and use it towards two of the next monthly mortgage payments.

If you have issues with the seller's disclosure, you need to notify the seller's agent and title company today. I do not think that the seller is going to be very forgiving and this may be an uphill climb.

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Answered on 8/22/07, 6:51 am


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