Once you accept a buyer’s offer in Dallas–Fort Worth, the TREC contract becomes effective the day the last party signs. That triggers deadlines for earnest money, the option period, inspections, appraisal, title review, and closing. Most DFW transactions move from contract to closing in roughly 30–45 days, depending on financing, inspection outcomes, and title clearance.
What happens after a seller accepts an offer in Dallas–Fort Worth?
Once both parties sign the TREC One to Four Family Residential Contract and the last signature is dated, the contract becomes legally effective. Every deadline in the transaction starts counting from that date. Over the next 30–45 days, several things happen. Earnest money moves to the title company. The buyer conducts inspections during the option period. The lender orders an appraisal. The title company runs its search and issues a commitment. Finally, the parties work toward a closing where the title company records the deed and disburses funds.
Key Takeaways
- The TREC contract’s “effective date” is the date the last party signs. It starts every deadline in the transaction, including the 3-day window for the buyer to deliver earnest money and the option fee to the title company.
- As of July 2026, the Federal Reserve Bank of St. Louis FRED data shows a median of 54 days on market in the Dallas–Fort Worth–Arlington metro. That reflects a moderately paced market with roughly 4.7 months of inventory.
- The option period gives the buyer an unrestricted right to terminate, but only if the option fee is delivered on time. A missed delivery eliminates that right entirely.
- Post-inspection repair requests in DFW are handled through a TREC Amendment to Contract, not a verbal agreement. You are never obligated to accept the buyer’s requests.
- Texas is effectively a “wet funding” state. You don’t hand over keys until the lender has wired funds and the title company has disbursed them. That sometimes happens later in the day than the morning signing.
How does the Texas contract become binding after you accept an offer?
The verbal “yes” doesn’t start the clock. What matters is the effective date, the date the last party (buyer or seller) signs the TREC contract. That date is filled in by the agents or the title company. It is the reference point for every deadline in the transaction. According to Texas Real Estate Commission (TREC) guidance on how days are counted, all deadlines in the contract run as calendar days from the effective date. The only exception is when the contract specifically says “business days.”
Local agents in DFW commonly call this moment “going under contract” or having an “executed contract.” From your perspective as a seller, this is when the transaction becomes real and the work begins.
Earnest money and the option fee: where they go and why it matters
Under Paragraph 5 of the current TREC resale contract, the buyer has 3 days after the effective date to deliver both the earnest money and the option fee to the escrow agent. In a DFW transaction, that escrow agent is the title company. Per TREC’s contract guidance, if the option fee is not delivered on time, the buyer loses the unrestricted right to terminate under the option paragraph. That’s a significant consequence. It’s also one reason your agent will want written confirmation (a receipt from the title company) within those first few days.
The title company holds the earnest money in escrow for the life of the transaction. The option fee, per standard TREC contract terms, is credited toward the sales price at closing if the deal closes. What if it doesn’t close? TREC is clear that it does not adjudicate earnest-money disputes. If buyer and seller can’t agree on who gets the funds, it may take a mutual written release or court proceedings to resolve. The exact contract language and timelines govern, not general rules of thumb.
The option period: what sellers need to understand
The option period is a negotiated window. Texas law doesn’t mandate one. However, if the buyer pays the agreed option fee, they receive an unrestricted right to terminate for any reason during that time. As of mid-2026, DFW sits at a median of 54 days on market with roughly 4.7 months of inventory (per the Realtor.com DFW July 2026 market report). Consequently, buyers have enough negotiating leverage to push for option periods in the 7-to-10-day range. That is longer than the ultra-short windows common during the 2021–2022 frenzy.
During those days, expect multiple inspectors at your property. DFW buyers typically order a general home inspection, roof inspection, foundation evaluation, HVAC service check, and sometimes a sewer scope. These often involve different specialists, sometimes on different days. That’s normal. The buyer’s deadline to terminate is firm. TREC requires written notice of termination delivered by 5:00 p.m. local time on the last day of the option period. If that notice doesn’t arrive in writing by that deadline, the buyer has waived the unrestricted termination right.
What happens with inspections, appraisal, and title before closing?
Inspection results and repair negotiations
After the buyer’s inspections, one of three things happens. The buyer proceeds as-is, terminates within the option period, or submits a repair request. In DFW, post-inspection negotiations are formalized through a TREC Amendment to Contract. That written document specifies exactly what the buyer is asking for, whether repairs, a price reduction, or a closing-cost credit.
Buyers in this market tend to focus their requests on safety, structural, and major system issues. Examples include roof condition, foundation movement, HVAC performance, electrical hazards, and active plumbing leaks. Cosmetic items rarely move the needle. As the seller, you have three choices. You can agree to the repairs (typically with licensed contractors before closing), offer a credit in lieu of repairs, or decline entirely. If you decline and the buyer is still within their option period, they can walk. If the option period has expired, they generally must proceed or be in default. None of this is automatic. It’s all governed by your specific contract terms. This is exactly the kind of negotiation where having an experienced agent in your corner matters.
Appraisal and financing
For financed purchases, the buyer’s lender orders an appraisal after the contract is executed. The appraiser visits the property and produces a value opinion based on comparable sales. If the appraisal comes in at or above the contract price, financing moves forward. If it comes in low, you’re typically looking at one of four outcomes. The buyer asks you to reduce the price to the appraised value. You and the buyer agree to split the difference. The buyer brings additional cash to cover the gap. Or the buyer terminates under any applicable financing or appraisal contingency in the TREC Third Party Financing Addendum.
The most recent DFW data shows a median sale price near $399,000 and closed sales down about 8.6% year-over-year as of July 2026. In this market, low appraisals are still possible, particularly in neighborhoods with limited recent comparable sales. The right response depends on your contract terms, not on what someone tells you is “standard.”
Title commitment and survey review
While inspections and appraisal are underway, the title company is doing its own work. It runs a title search and identifies any outstanding liens, encumbrances, or title defects. Then it issues a title commitment. That document is typically organized into schedules (A, B, C, and D) that outline what the title company will insure and what exceptions or requirements exist. The buyer has a contractual deadline to raise title objections. You have a separate deadline to cure any objections you agree to address.
Survey is handled similarly. Many DFW sellers in platted subdivisions already have an existing survey. Whether the buyer accepts it or orders a new one is negotiated in the contract. In more rural or exurban parts of the Metroplex, scheduling a new survey can take longer. For that reason, agents sometimes negotiate extended survey objection periods in those areas. Once title and survey are cleared, the transaction moves into its final stretch.
The path from clear-to-close to funding
Here’s a rough timeline of what DFW sellers can expect after the effective date:
| Phase | Typical Timing After Effective Date | Key Events |
|---|---|---|
| Option Period | Days 1–10 (negotiated) | Earnest money and option fee delivered; inspections completed; repair amendment negotiated |
| Underwriting and Appraisal | Weeks 2–4 | Lender orders appraisal; buyer’s loan moves through underwriting; title commitment issued; survey reviewed |
| Final Week Before Closing | Days 25–35+ | Lender issues clear-to-close; closing scheduled at title company; buyer completes final walkthrough |
| Closing and Funding | Closing day | Parties sign at title company; lender wires funds; title company records deed and disburses proceeds |
Delays happen. Title issues, lender conditions that take extra time to satisfy, or appraisal disputes can all push the closing date. Building a realistic expectation of 30–45 days from contract to closing is reasonable for most DFW transactions. Cash purchases, however, can move faster.
Closing day and wet funding
One thing I want every DFW seller to understand about closing day: Texas is effectively a wet-funding state in practice. The transaction isn’t truly done until the lender has wired funds and the title company has disbursed them. Signing documents at the title company in the morning doesn’t mean you hand over keys at noon. Funding sometimes happens later that afternoon, and occasionally the next business day. Your agent should walk you through the exact timing expectations for your specific closing. That way, you’re not caught off guard.
Do you want to understand what the seller’s side of the closing table looks like in more detail, including what costs come out of your proceeds? The post on who pays what at a DFW closing breaks that down. And if you’re still weighing whether now is the right time to sell, read Sell or Wait? DFW’s 2026 Market Shift before you list.
Frequently Asked Questions
Once I accept an offer on my Dallas house, when is the contract officially binding in Texas?
The contract becomes binding when both parties have signed and the last signature is dated. That date is the “effective date” under the TREC contract, and it starts every deadline in the transaction. The verbal acceptance or a handshake doesn’t trigger the legal deadlines. The signed, dated document does. Your agent or the title company will confirm the effective date as soon as the contract is fully executed.
How long does a buyer have to back out during the option period in Dallas–Fort Worth?
The option period length is negotiated in the contract. There’s no state-mandated minimum or maximum. In the current DFW market, 7-to-10-day option periods are common. To exercise the right to terminate, the buyer must deliver written notice by 5:00 p.m. local time on the last day of the option period, per TREC’s contract guidance. If that deadline passes without written notice, the buyer has waived the unrestricted termination right.
Where does my earnest money go after we sign the contract on a DFW home?
The earnest money goes to the title company acting as escrow agent. It must be delivered within 3 days of the effective date per the TREC contract. The title company holds it in escrow until closing, at which point it’s applied toward the buyer’s costs. If the transaction falls apart, who gets the earnest money depends on the specific contract terms and timelines. TREC does not adjudicate those disputes. A disagreement may therefore require a mutual written release or, in contested cases, court resolution.
What happens if the home inspection in my Texas sale turns up major problems?
If the buyer’s inspection reveals significant issues during the option period, the buyer has three options. They can terminate for any reason, request repairs or a concession through a TREC Amendment to Contract, or proceed as-is. As the seller, you can agree to the requested repairs, offer a credit instead, or decline. However, if you decline and the buyer is still within the option period, they can walk away and recover their earnest money. Once the option period expires, the buyer’s ability to terminate without penalty depends on whatever remaining contingencies (financing, appraisal) are in the contract.
If the appraisal comes in low on my DFW home, can the buyer walk away?
Whether the buyer can walk away depends on the specific financing addendum and any appraisal-gap provisions in your contract. Suppose the buyer has a TREC Third Party Financing Addendum with an appraisal contingency and gives written notice within the required timeframe. In that case, they can typically terminate and recover their earnest money. If no such contingency exists or deadlines have passed, the situation is more complex. Common resolutions include a price reduction, splitting the gap, or the buyer bringing additional cash. None of these outcomes are automatic, though. Your contract terms control.
How long does it usually take from contract to closing in the Dallas–Fort Worth market?
Most financed DFW transactions close in roughly 30–45 days from the effective date. Cash deals can move faster. As of July 2026, FRED data shows a median of 54 days on market in the DFW metro, reflecting a moderately paced market. Keep in mind that days-on-market measures time to get under contract, not contract-to-close. Delays from title issues, lender conditions, or appraisal disputes can extend the timeline. That is why experienced agents build buffer time into the closing date when possible.
What does the title company do after we go under contract on a house in North Texas?
The title company serves as the transaction’s escrow agent and closing hub. It receives and holds the earnest money and runs a title search to identify any liens or encumbrances. It also issues the title commitment, coordinates lender documents, and ultimately disburses funds on closing day. Once the lender wires funds and all conditions are satisfied, the title company records the deed with the county. Then it pays out proceeds to the seller and other parties. Nothing moves without the title company’s involvement in a Texas residential closing.
The bottom line for DFW sellers
Accepting an offer is the beginning of the process, not the end. The 30-to-45 days between contract and closing involve more moving parts than most sellers expect the first time through. Every deadline is real, and every negotiation has consequences. The difference between a smooth closing and a derailed deal often comes down to two things. First, knowing exactly what your contract says. Second, responding quickly when issues come up.
If you’re under contract now or getting close to accepting an offer, I’m glad to walk you through your specific situation. Schedule a consultation with me directly. We’ll make sure you know exactly what to expect at every step.
Equal Housing Opportunity. Jason Feller is a licensed Texas Real Estate Broker (Feller Realty). This article is general information only and is not legal, tax, or financial advice. Confirm your specific costs, contract terms, and transaction details with your title company, tax advisor, or lender. Texas Real Estate Commission Consumer Protection Notice | Texas Real Estate Commission Information About Brokerage Services.
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