Question regarding option fee and buying a house

[Schfifty Five]

Hey everyone, I've got a question about the option fee when purchasing a home and whether or not I am able to get it refunded.

A few weeks ago, my wife and I put in a back up offer on a house which was currently already under contract. We put in our 1% Earnest Money Deposit as well as the $100 option fee. The seller had until 3/13/2015 to tell us if he will make us the primary contract or not.

Well, on 3/10/2015, my wife and I had 2nd thoughts about the house and decided to pull out of our back up contract. We are getting the EMD back via check/snail mail. So all good there.

However, the $100 option fee was already cashed by the seller. Now from a lot of googling, I've read that the option fee is pretty much non-refundable, which I agree in most cases. However, I was never the primary contract with the seller and I never had the 10-day option period. Therefore, should the seller have cashed that $100 check? Am I entitled to get the $100 back?

I'm still kinda new to the whole buying process so I'm not sure if I have all the details/understandings of these things. I've also asked my realtor and he wasn't 100% sure either, so he is also looking into this. Anyway, just wanted to get ATOT's thoughts. Any help is appreciated.

I'm in TX if that makes a difference.

Thanks.

 

[Schfifty Five]

Morning bump! Can any realtors or folks knowledgeable in this give me some advice? Much appreciated.

 

[richardycc]

we don't have this option fee thingy in my state, so I am clueless, but I guess it might depend if the original contract fell through? if it did, you just exercised the $100 option to back out, therefore, the seller should be able to keep your $100. If not, go ask or sue the seller for your $100 back? or chalk it up as a lesson learned.

 

[Schfifty Five]

we don't have this option fee thingy in my state, so I am clueless, but I guess it might depend if the original contract fell through? if it did, you just exercised the $100 option to back out, therefore, the seller should be able to keep your $100. If not, go ask or sue the seller for your $100 back? or chalk it up as a lesson learned.

Yeah, I always thought the option fee was basically to pay for the 10 day (or whatever agreed upon time frame) option period where you can do an inspection and pull out for any reason.

In my situation, I was a back up offer which was never executed by the seller. He had until 3/13/2015 to let us know if he was going to continue with the first/primary buyer, or drop him and go with us. My wife and I decided to pull out of the back up offer before that deadline, so our contract was never executed, and thus, the 10 day option period never began.

 

[edro]

Morally, since you pulled out, you lose the $100, IMO.
I have no idea legally or generally in the industry, since I have never heard of Option Fees.

Y u mad bro? You pulled out and you are worried about $100?
Head's up, buying a house costs a LOT more than $100.

 

[Schfifty Five]

Morally, since you pulled out, you lose the $100, IMO.
I have no idea legally or generally in the industry, since I have never heard of Option Fees.

Y u mad bro? You pulled out and you are worried about $100?
Head's up, buying a house costs a LOT more than $100.

It does? Dang it, looks like I can't get a house then.

And no, not mad, just want to know the details of it. My understanding of it and what the facts are might be different, so just am inquiring about it with those who might know.

I didn't pull out while I was under contract though. I was a back up offer and the seller had not yet executed my offer, therefore no option period began.

 

[Krazy4Real]

I think pulling out is worth $100 if you consider the alternative.......