An active option contract means a home seller has accepted an offer to sell their home but the contract is in the option period. During the active option contract, the buyer has several days to have the home inspected. In other locations, the active option contract is referred to as a contingency period or due diligence period.
In Texas, buyers must make an option period deposit, which is separate from the earnest money deposit. The option period deposit cannot be reclaimed by the buyer if they back out of the sale, even if it’s for a reason covered by a contingency in the contract. If the buyer completes the purchase, the option deposit will be applied to the final sale price.