What is a possible fee?

Optional fee is an additional payment made by the buyer to the seller when selling real estate. In return for payment, the buyer will receive the right to pull out of the trade during a certain period, even after formally agrees with the sale. The use of an option fee is almost completely limited to Texas. These forms include the provision of a possible fee by default. It is not mandatory to use an option fee or actually use commission forms, but of course they are widely used. Both parties are also negotiating the duration to negotiate a clause on options: This is most often about 10 days. During this period, the buyer may cancel the agreement must give a reason and without further consequences.

The main purpose of the option fee is to allow the buyer to further explore the property without the risk that someone else will make an offer. This time the purchased may include inspection and waiting for evaluation of expert advisors.It can also allow time to re -negotiate the sale price if the inspection throws all surprises. Fans of the concept say they can also benefit dealers because they will avert potential buyers who are discouraged by the risk of buying a property without having a chance to check it fully.

Option fee should not be confused with serious money, which is a payment, usually in the extent of several thousand USD to the buyer to prove that he or she seriously thinks of his intention to buy real estate. The money is not paid directly to the seller, but rather inserted by the store with a third party. If the seller decides to pull out of the agreement, the money will return to the buyer; If the buyer pulls out of the agreement, the money will fall to the seller. If the agreement continues, the money goes to the seller and is part of the buyer's total payments.