An American home purchase contract usually contains contingencies, conditions the buyer adds “to protect yourself.” If the inspection finds serious problems, if the loan falls through, or if the house is appraised below the price, the buyer can walk away without losing the earnest money deposit.
In Texas, the standard contract offers an option period. The buyer pays the seller an option fee. For a set number of days, the buyer may then “terminate the contract for any reason or no reason at all.”
During the housing boom of the pandemic years, many buyers waived these contingencies to make their offers more attractive. Then, if problems arise, “the buyer may have no contractual way out.”