Challenging Option Contracts In Texas

Have you been told you're bound by an "option contract" to sell your land, or let someone else buy it years after the deal closed? You may have more rights than you've been told. Texas courts don't automatically enforce these agreements. In fact, many option contracts can be challenged, or thrown out entirely, if they're vague, one-sided, or never properly agreed to in the first place. This article walks through two real court cases that show how Texas judges decide whether an option agreement is enforceable, and what makes one fall apart.

What is an Option Contract?

Option contracts are common in Texas real estate. They are often used by developers or sellers to reserve the right to repurchase property or enforce construction timelines. But the existence of an option contract doesn't mean it's enforceable. In fact, Texas courts have made clear that these agreements are subject to strict requirements, and may be set aside if they fail to meet them.