Texas Real Estate Contract and Option Period: TREC Form 20-19 Explained

Last updated November 14, 2026. Citations come from the Texas statutes and official agency pages linked in Sources. Where we could not confirm something on an official page, we say so.

The Texas Real Estate Commission’s One to Four Family Residential Contract (Resale), Form 20-19, effective July 1, 2026, leaves the option period length as a blank for the parties to fill in. During that period the buyer can terminate for any reason by giving notice by 5:00 p.m. local time.

This guide walks through the option period, the Seller’s Disclosure Notice, title deadlines and default remedies as the form states them.

Which TREC form applies

TREC lists Form 20-19 as its most frequently used contract, for the resale of a single family home, duplex, triplex or fourplex. It is not for condominiums, new homes sold by a builder or farm and ranch property.

TREC’s other forms include the Residential Condominium Contract (Resale) 30-18, the New Home Contracts 23-20 and 24-20, the Farm and Ranch Contract 25-17, the Unimproved Property Contract 9-18 and the Amendment to Contract 39-11.

The form says it is intended only for trained real estate license holders and is not meant for complex transactions. It replaces Form 20-18.

The option period

• The seller grants the buyer the unrestricted right to terminate by notice within a blank number of days after the effective date (paragraph 5B). Notice must be given by 5:00 p.m. local time where the property is located.
• If the buyer terminates in the option period, the option fee goes to the seller and the earnest money is refunded to the buyer (5B).
• The option fee and earnest money amounts are blanks. The buyer delivers them to the escrow agent within 3 days after the effective date, and the option fee is credited to the sales price at closing (5A).
• If no option fee amount is stated or it is not delivered on time, the buyer has no unrestricted termination right under paragraph 5 (5D).
• Time is of the essence for paragraph 5, and strict compliance is required (5E).

The form does not state a typical option length or fee, and we did not find an official source that does, so we do not give one.

Seller's Disclosure Notice

Property Code Sec. 5.008 requires a seller of residential property with no more than one dwelling unit to give the buyer a written notice substantially like the prescribed one.

It must be delivered on or before the effective date of an executory contract, or the buyer may terminate within seven days of receiving it (Sec. 5.008(f)). TREC publishes it as Form 55-1.

Paragraph 7B of the contract also lets a buyer terminate for any reason within 7 days after receiving it, or before closing if earlier. See for sale by owner in Texas.

Title, repairs and closing

• The title commitment is due within 20 days after the title company receives the contract (6B). The buyer’s objection period is the earlier of the closing date or a blank number of days after receiving the commitment, exception documents and survey (6D).
• Neither party must make lender-required repairs unless agreed. If the cost exceeds 5% of the sales price, the buyer can terminate and get the earnest money back (7E).
• Closing is on or before a blank date, or within 7 days after title objections are cured or waived, whichever is later (9A).
• If the buyer defaults, the seller can enforce specific performance or terminate and receive the earnest money as liquidated damages. If the seller defaults, the buyer can enforce specific performance or terminate and receive the earnest money (15).

How to sell a house in Texas when you want to understand the contract first

1. Read the contract with your agent or attorney, especially the option period, title and default sections.
2. Get a payoff for any mortgage and the amount of any unpaid property tax. Both are paid from the sale proceeds at closing.
3. Compare offers on what you net after repairs, commissions and closing costs, not on the headline price.
4. If you want a fast, simple closing, ask for a written cash offer. We buy houses as-is, with no repairs and no agent commission. See how we buy houses in Texas.

Texas real estate contract FAQ

What is the option period in a Texas contract?

A period in which the buyer can terminate for any reason by notice, set by a blank number of days in TREC Form 20-19 paragraph 5B.

How much is the option fee?

It is a blank dollar amount in the form. We found no official figure.

What form does Texas use for resale?

TREC Form 20-19, One to Four Family Residential Contract (Resale), effective 07/01/2026 per the TREC contracts page.

Does the seller have to give a disclosure?

Generally yes for a residential property with not more than one dwelling unit, with exceptions (Property Code Sec. 5.008).

Sources

• TREC Form 20-19, One to Four Family Residential Contract (Resale)
• TREC: Contracts and forms
• Texas Property Code, Chapter 5 (Sec. 5.008)

This guide is general information, not legal or tax advice. Laws, forms and fees change, so confirm details with the official office or a Texas attorney or tax professional.