Texas runs a standardized process. Nearly every Austin resale offer is written on the same state form, and the deadlines inside it control the deal. Here is the sequence, plus the parts that surprise buyers relocating in.
What are the first steps to buying a home in Austin?
Get preapproved before you tour. The CFPB recommends preapproval from at least three lenders; the letter is a tentative statement of willingness to lend, not a guaranteed offer, and it usually expires in 30 to 60 days. Then the paperwork that is now mandatory. Since January 1, 2026, Texas Occupations Code Sections 1101.562 and 1101.563 require a written agreement with a residential buyer before showing property, or before presenting an offer if nothing is shown. It must state the services, a termination date, and disclose in conspicuous language that broker compensation is not set by law and is fully negotiable. NAR's rules, effective August 17, 2024, also require a written buyer agreement before touring and keep offers of compensation off the MLS.
What is the option period and why does it matter?
It is your unrestricted right to walk. Under Paragraph 5B of TREC form 20-19, in exchange for paying the option fee on time, the seller grants you the unrestricted right to terminate by notice within a negotiated number of days after the effective date, given by 5:00 p.m. local time. Terminate in time and the option fee is not refunded, but the earnest money is. Paragraph 5A sends both to the escrow agent within 3 days of the effective date, and the option fee is credited to the sales price at closing. If no dollar amount is stated, or you pay late, Paragraph 5D removes that right, and Paragraph 5E makes time of the essence. Inspect now: Paragraph 7A gives access with TREC-licensed inspectors and keeps the seller's utilities on.
“Pay the option fee late and you still have a contract. You just no longer have a way out of it.”
How long does it take, and which deadlines actually bind?
Build the calendar backward from the paperwork. The title commitment is due within 20 days after the title company receives the contract; if it runs late, the time extends up to 15 days or 3 days before closing, whichever is earlier, and you may terminate with earnest money refunded. Under Paragraph 6C the seller may deliver an existing survey with a T-47 affidavit or T-47.1 declaration, and if the title company or your lender rejects it, a new survey is due no later than 3 days before closing. TREC's Third Party Financing Addendum 40-11 separates buyer approval from property approval, the appraisal and underwriting condition; since January 3, 2025, terminating under either requires a notice of termination plus a written statement from the lender. Federal law puts your Closing Disclosure in hand at least three business days before closing.
What closing costs does a buyer actually pay?
Paragraph 12A(2) spells it out. Buyer expenses include the appraisal fee, loan application and origination charges, credit reports, loan document preparation, recording fees, the loan title policy with lender endorsements, loan-related and repair inspection fees, underwriting and wire transfer fees, half the escrow fee, and prepaid items like hazard and flood insurance and reserve deposits for taxes and insurance. Sellers pay lien releases, deed preparation, tax certificates, and the other half of escrow. Who buys the owner's title policy is a checkbox in Paragraph 6A; the Texas Department of Insurance says the premium is paid once at closing and is negotiable between the parties, with a simultaneous loan policy discounted to $100.
What surprises buyers coming from out of state?
The tax math runs the other direction. Texas has no personal income tax and no state property tax, but local taxing units set the rates and collect. Travis County alone adopted a 2025 rate of $0.375845 per $100 of valuation, one line on a bill that also carries school, city, and college districts. School districts must grant a $140,000 residence homestead exemption under Tax Code 11.13(b), and any unit may add a local option of up to 20 percent, never less than $5,000; file before May 1. Out toward the Hill Country, watch the districts. Water Code Chapter 49 requires a signed notice of a utility district's tax rate, bonded indebtedness, or standby fee before final execution, and Property Code 5.014 covers public improvement districts. Outside city limits you also get an extraterritorial jurisdiction notice under Property Code 5.011 and, under Water Code 13.257, notice that a certificated water or sewer provider may charge special costs and need time to build lines. No attorney is required; a title company escrow officer closes and funds the sale.
