After the Offer: The North Texas Seller's Path from Contract to Closing

The Clock Starts When the Contract Is Signed

Most Texas resale homes sell on the Texas Real Estate Commission's promulgated contract, the One to Four Family Residential Contract (Resale), currently TREC Form 20-19, effective July 1, 2026. The contract defines the effective date, which is the day the last party signs and delivers the contract, and from that date the deadlines in the contract begin to run. Two of the first deadlines belong to the buyer: earnest money and the option fee.

Under Paragraph 5 of the contract, the buyer must deliver the earnest money and the option fee to the escrow agent, usually the title company, within 3 days after the effective date. If the third day falls on a weekend or holiday, the deadline moves to the next business day. The earnest money is held in escrow and is applied toward the purchase price at closing. The option fee is separate, and it buys the buyer a specific right described in the next section.

For a seller, the practical point is that the transaction is managed on a calendar, not on good intentions. Your listing agent should confirm the effective date, the closing date, and every deadline in the contract the day it is signed, and then track each one. Most of the work between acceptance and closing is done by the title company, the buyer's lender, and the inspectors, but the deadlines only move if both parties agree in writing.

The Option Period: The Buyer's Right to Walk Away

The option fee buys the buyer an unrestricted right to terminate the contract for any reason during the option period. That right is the reason Texas buyers can order an inspection, review the title commitment, and decide whether the home truly fits before they are locked in. The option period is a negotiated number of days written into the contract, commonly 5 to 10 calendar days, and the buyer must give written notice of termination by 5:00 p.m. local time on the last day of the period.

What happens to the two deposits is where sellers often get confused. If the buyer terminates during the option period, the option fee goes to the seller, and it is non-refundable. The earnest money, by contrast, is refunded to the buyer. If the sale proceeds to closing, the option fee is typically credited toward the purchase price on the closing statement. The option fee amount is fully negotiated, commonly in the $100 to $500 range, and if the contract states no option fee, or the buyer fails to deliver it on time, the buyer loses the right to terminate under the option period.

The option period is also the window in which the buyer's inspection normally happens, which is why the next two sections, the title commitment and the inspection, are connected to this same stretch of days. A buyer who finds a serious issue can terminate under the option right, or the two sides can negotiate repairs or a credit. The option fee is not a penalty on the buyer; it is the agreed price of that flexibility, and it is the seller's compensation for taking the home off the market during the period.

The Title Commitment

The title company opens a file after it receives the signed contract, searches the public records, and issues a title commitment, usually within the first several days of the transaction. The commitment is the title company's statement of the conditions under which it is willing to issue a title insurance policy. It identifies the current owner, liens, easements, restrictions, and other matters affecting the title, organized into schedules that list what must be satisfied before a policy can issue.

The commitment matters to a seller because it shows what must be cleared to deliver marketable title. Common items include an existing mortgage or deed of trust that must be paid off and released at closing, old liens, easements, and subdivision restrictions. Your agent and the title company work through the requirements, and the title policy is issued after closing. The buyer and the buyer's lender review the commitment during the option period, which is why a title problem discovered late can delay a closing date.

In Argyle and Northlake, the commitment is also where community-specific obligations show up: HOA covenants, and in some communities PID, MUD, or WCID assessments that run with the land and appear on the tax bill. Sellers in communities such as Pecan Square, Harvest, and Canyon Falls should expect those items in the title work and should be ready to provide the buyer with HOA documents and any payoff information the title company requests. The HOA, PID, and MUD guide for sellers explains how those assessments work, and the property taxes and ownership costs guide covers how they appear on the tax bill.

The Inspection and What Comes After It

Most buyers order a professional home inspection during the option period. The inspection is separate from the appraisal, and it is a detailed evaluation of the home's condition, not a lender requirement. The inspector reports on the roof, foundation, electrical, plumbing, HVAC, and other systems, and the report is delivered to the buyer, who decides how to respond.

Under the TREC contract, a buyer who is unhappy with the inspection results can terminate under the option right, or the buyer can request repairs or a credit. Sellers respond with a repair addendum or a counter, and the two sides either reach an agreement or the buyer can walk. The tone of these negotiations matters: a reasonable seller who fixes genuine issues or offers a fair credit keeps the deal moving, while a seller who refuses every request risks the buyer terminating and the home going back on the market.

A seller who wants fewer surprises at this stage can order a pre-listing inspection before the home goes on the market. The pre-listing inspection guide explains what a seller-ordered inspection covers, what Texas Property Code 5.008 asks sellers to disclose, and how to use the report to repair, price for condition, or disclose. Knowing the condition of your own home before an offer arrives puts you in a stronger position when the buyer's inspection report comes back.

Appraisal and the Financing Contingency

If the buyer is financing the purchase, the lender orders an appraisal to confirm the home is worth the contract price. Under the Third Party Financing Addendum, a buyer can terminate if the property does not appraise at or above the contract price, or if the buyer cannot obtain the financing described in the addendum, with the earnest money refunded. That is why pricing a home to appraise matters: an appraisal below the contract price gives the buyer the right to renegotiate or walk.

The financing and appraisal work also sets the closing timeline. Texas residential closings commonly run 30 to 45 days from the executed contract to funding. Conventional loans often close on the shorter end, roughly 30 to 35 days, while VA and FHA loans tend to run closer to 40 to 45 days, and cash transactions can close much faster if both sides agree. The closing date is written into the contract, and moving it requires a written amendment.

For sellers who are also buying, the timing of the two transactions is the hardest part to coordinate. The buy or sell first guide walks through sale contingencies, bridge financing, and rent-backs for move-up sellers, and it is worth reading before you set a closing date that depends on another closing.

What Sellers Pay at Closing in Texas

Seller closing costs in Texas are mostly a matter of local custom and negotiation, not state law, so the exact split is written into the contract. The items sellers most often pay include the owner's title insurance policy, escrow and title company fees, recording fees, and prorated property taxes.

The owner's title policy insures the buyer's ownership, and it is customarily paid by the seller in most Texas counties. Title insurance premiums are set by the Texas Department of Insurance, so the premium for a given policy amount is the same at every title company; what varies is the ancillary fees such as escrow, search, and document preparation. The settlement or escrow fee is often split between buyer and seller, and sellers also commonly pay their share plus smaller items such as notary and courier fees and the recording fee to release the existing lien.

Property taxes are prorated at closing because Texas taxes are paid in arrears. The seller pays the taxes for the days they owned the property, from January 1 through the day before closing, and the buyer pays from the closing date through December 31. The title company calculates a daily rate by dividing the annual tax amount by 365 and credits each side for their share on the closing statement. Because the current year's bill is often not final at closing, the proration is based on the estimated or prior-year amount, and the parties settle any difference when the final bill arrives. The property taxes and ownership costs guide explains how homestead exemptions, appraisal districts, and special districts shape the actual bill in Northlake, Argyle, and Denton County.

Possession: When the Keys Change Hands

The contract sets when the buyer takes possession, usually at closing, and the seller should plan the move around that date rather than assume extra days. If you need to stay in the home after closing, the standard tool is a rent-back, a temporary lease of the property back to the seller, typically on TREC Form 15-7. A rent-back must be written, should state the daily rate and the exact move-out date, and carries real risk for the buyer, so it is negotiated like any other term.

The move-up seller guide covers rent-backs and the timing questions sellers face when their next home is not ready, and it is the right place to start if your closing date depends on a new-construction completion date or another sale.

What This Means for Sellers in Argyle and Northlake

The contract-to-closing path is the same everywhere in Texas, but the details that show up in the title work and the closing statement are local. In Argyle and Northlake, most listings are newer homes in master-planned communities, which means the buyer's inspection report is usually shorter, but the title work and the closing statement carry HOA dues, PID and MUD assessments, and school and county tax prorations that vary by community and by exact address.

Sellers here also compete with builders. A buyer who is deciding between your resale and a new home at a nearby community is comparing not just price but incentives, timelines, and total monthly cost, and the closing process for a resale is different from a builder contract. The Selling in Argyle guide and the Selling in Northlake guide cover pricing against new construction, and the builder incentives guide explains how resale sellers should respond when builders are advertising incentives.

One more local note: because taxes are prorated from January 1, the timing of your closing within the year changes the size of the credit at the table. A closing late in the year means the buyer credits you for the months after closing, and a closing early in the year means a smaller proration. Your agent and the title company calculate the exact numbers, but knowing how the proration works helps you read the closing statement instead of just signing it.

Seller Checklist: Before and After the Offer

Use this list to stay ahead of the deadlines between acceptance and closing:

• Confirm the effective date, the option period dates, the closing date, and the possession date the day the contract is signed, and put every deadline on a calendar.
• Expect the earnest money and option fee to be due to the title company within 3 days of the effective date, and confirm the escrow agent received both.
• Review the title commitment when it arrives and respond quickly to any requirements, such as payoff statements, lien releases, or HOA documentation the title company requests.
• Decide in advance how you will handle inspection requests: which repairs you will make, which you will decline, and whether you prefer a credit instead of work done before closing.
• Gather the documents buyers and title companies commonly ask for: the seller's disclosure, the survey if you have one, HOA documents and current dues, utility account information, and any builder warranty or transfer documentation for a newer home.
• Plan the move around the closing date, and if you need to stay past closing, negotiate a written rent-back before the contract is signed rather than after.
• Ask your agent for an estimated net proceeds statement early, so the seller closing costs, prorated taxes, and any payoff amounts are not a surprise at the table.
• Keep the home in showing-ready condition until the day of closing, because the buyer typically does a final walkthrough before signing.

Frequently Asked Questions

How long after accepting an offer does closing happen?

Texas residential closings commonly run 30 to 45 days from the executed contract to funding. Conventional loans often close in roughly 30 to 35 days, VA and FHA loans tend to run closer to 40 to 45 days, and cash transactions can close faster if both sides agree. The closing date is written into the contract.

What is the option period and who keeps the option fee?

The option period is a negotiated number of days, commonly 5 to 10, during which the buyer can terminate the contract for any reason. If the buyer terminates during the period, the option fee goes to the seller and is non-refundable, while the earnest money is refunded to the buyer. If the sale closes, the option fee is typically credited toward the purchase price.

When is earnest money due and who holds it?

Earnest money and the option fee are generally due to the escrow agent, usually the title company, within 3 days after the effective date, extended to the next business day if the third day falls on a weekend or holiday. The escrow agent holds the earnest money until closing, when it is applied toward the purchase price.

What if the appraisal comes in below the contract price?

Under the Third Party Financing Addendum, a buyer financing the purchase can terminate if the property does not appraise at or above the contract price, or the parties can renegotiate the price. Pricing the home to appraise from the start, using recent comparable sales, is the best way to avoid this situation.

What closing costs do sellers pay in Texas?

By local custom, sellers most often pay the owner's title insurance policy, escrow and title company fees, recording fees, and prorated property taxes. These are customs and negotiated terms, not requirements of state law, so the exact split is written into the contract. Title insurance premiums are set by the Texas Department of Insurance and are the same at every title company for a given policy amount.

How are property taxes prorated at closing?

Texas property taxes are paid in arrears, so at closing the seller pays for the days they owned the property, from January 1 through the day before closing, and the buyer pays from the closing date through December 31. The title company divides the annual tax amount by 365 to get a daily rate and credits each side on the closing statement.

What if the buyer's financing falls through?

Under the Third Party Financing Addendum, a buyer who cannot obtain the financing described in the contract can terminate, with the earnest money refunded. Sellers can reduce the risk by reviewing the buyer's pre-approval before accepting an offer and by confirming the buyer's lender is responsive during the transaction.

Can I stay in my home after closing?

Yes, if the contract includes a rent-back, a temporary lease of the property back to the seller, typically on TREC Form 15-7. A rent-back should state the daily rate and the exact move-out date in writing. It is a negotiated term, and buyers often want it structured carefully because the home is theirs once the deed is recorded.

Who signs what at closing?

At a Texas closing, the seller signs the deed, typically a warranty deed, that conveys the title to the buyer. The buyer signs the promissory note, the deed of trust, the Closing Disclosure, and related lender documents if financing. The title officer oversees the signing, funds the transaction, records the deed, and issues the title policy.

Conclusion

The stretch between an accepted offer and closing is where a sale is won or lost on details: the 3-day earnest money deadline, the option period, the title commitment, the inspection, and the appraisal all happen on a calendar, and the closing statement is where the numbers you negotiated become real. Sellers who understand each step, respond quickly to title and inspection items, and plan the move around the closing date are the ones who close on time.

Explore the North Texas Real Estate Answer Center for direct answers to more buying and selling questions, and the area guide gathers every city, community, school, and tax resource on this site in one place.

If you are preparing to list a home in Argyle, Northlake, or anywhere in Denton County, I would welcome the chance to walk through pricing, the offer terms to watch for, and what to expect at your closing before you sign anything.

Sources

• Texas Real Estate Commission, One to Four Family Residential Contract (Resale), Form 20-19, effective July 1, 2026 (reviewed October 14, 2026).
• Texas Real Estate Commission, Contracts and addenda (reviewed October 14, 2026).
• Texas Department of Insurance, Title insurance frequently asked questions, including the difference between a title commitment and a title policy (reviewed October 14, 2026).
• Texas Real Estate Research Center at Texas A&M University, Option period basics (reviewed October 14, 2026).

Want to talk about selling in this area?

Theresa De La Rosa

Broker, REALTOR® · Covenant Heritage Realty, LLC | In DFW Living Group

Theresa De La Rosa is the founder and Broker of Covenant Heritage Realty, LLC and leads In DFW Living Group. With more than 18 years of real estate experience, she serves buyers, sellers, veterans, military and veteran clients, new-construction clients and relocating households throughout Northlake, Argyle and surrounding Denton County communities. She is a Texas Real Estate Broker (License 807294), holds the Accredited Buyer's Representative (ABR) designation, is a Certified Luxury Marketing Specialist, an A.I. Certified Broker and New Construction Specialist, and an AI Listing Advantage holder, and has been recognized as a RateMyAgent Price Expert and a Million Dollar Club producer. Learn more about Theresa and her Selling Guide.

Covenant Heritage Realty, LLC · 100 Plaza Place, Suite 300, #1066, Northlake, TX 76226 · Contact Theresa