From the Legal Hotline: When the Fee to Extend the Option Period Should be Delivered

April 01, 2020

We have callers to the Legal Hotline ask when the fee to extend an option period should be delivered. To extend an option period, you would use TREC’s Amendment of Contract (TXR 1903) and fill in the additional fee amount in Paragraph 6. Note that putting $0 in Paragraph 6 may risk the extension being held unenforceable. There is no time period stated in the Amendment for delivering the fee to extend the option period—the language presumes it has already been paid. The best practice would be to deliver the fee at the same time the Amendment is executed.

—Laura Miller, staff attorney

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