Buying in Texas vs. Arkansas: Key Differences

Thinking about buying on one side of Stateline Avenue or the other? In the Texarkana area, crossing from Bowie County, Texas into Miller County, Arkansas can change the contract you sign, how you handle inspections, and what to expect at closing. It can also affect taxes, homestead rules, and even who holds your earnest money. In this guide, you’ll learn the key differences so you can budget, plan your timeline, and ask the right questions before you make an offer. Let’s dive in.

Key differences at a glance

• Contracts and forms: Texas sales commonly use standardized TREC forms. Arkansas contracts often use REALTOR association forms or locally drafted agreements, so terms vary by the exact document.
• Inspection vs. option: Texas buyers often negotiate a short Option Period for termination for any reason after paying a small fee. Arkansas buyers typically rely on inspection and financing contingencies written into the contract.
• Earnest money and escrow: Both sides use earnest money. Funds are usually held by a title company, attorney escrow, or broker trust account named in the contract.
• Who closes: Title companies are common in both states. In some Arkansas transactions, attorneys can play a larger role depending on local custom.
• Timeline: Financed purchases on either side often close in about 30 to 45 days. Cash can be faster.
• Recording: Deeds record where the property is located — Bowie County, TX or Miller County, AR — with timing based on county processing.

Contracts and inspections

Texas TREC forms and the Option Period

In Texas, most resale homes use standardized TREC contracts and addenda that set clear expectations for timelines and contingencies. These forms commonly include a negotiated Option Period, typically a short window when you can cancel for any reason after paying an option fee to the seller. During that time, you usually complete inspections and due diligence. The option fee is separate from earnest money and is generally smaller, but the amount and days are negotiable.

Arkansas contracts and inspection contingencies

Arkansas contracts do not usually include a standalone paid option to terminate. Instead, your right to inspect and to end the deal is tied to contingencies written into the specific contract form used. Inspection and mortgage contingencies define what happens if results are unsatisfactory or if financing fails. Because forms vary, your exact rights and deadlines depend on the language you agree to when you sign.

What this means for you

If you are looking on both sides of the border, expect the Texas listing to reference TREC forms and an Option Period. On the Arkansas side, look closely at the inspection and financing terms that govern repair requests, credits, and termination windows. Your agent should review each agreement to confirm who holds earnest money, when deposits are due, and the steps to cancel if needed. Clear contract terms protect your timeline and your budget.

Earnest money and termination rights

Both states use earnest money to show good faith. The contract names where those funds will be deposited, such as a title company, attorney escrow, or a broker trust account, and sets the deadline for delivery. The size and timing of earnest money can follow local custom, but your agent can advise what is typical for your price point and neighborhood.

Termination works a bit differently. In Texas, the Option Period gives you a clean exit for any reason if you follow the deadline and notice requirements. In Arkansas, your path to terminate often depends on the inspection or financing contingency language and any defined remedies if inspections reveal issues. In either state, deadlines matter, so set calendar reminders and confirm notices in writing.

Title, closing, and timing

Who handles closing

Title companies commonly coordinate closings in both Texas and Arkansas, including title searches, escrow, and the settlement appointment. Some Arkansas counties use attorney escrow closings more often than Texas markets. In the Texarkana area, you will often see a title company named in the contract, but your agent will confirm whether an attorney is involved and who is preparing documents.

Title insurance and recording

Owner’s and lender’s title insurance policies are standard in both states, with American Land Title Association policy forms widely used. Who pays for the owner’s policy is negotiable and can follow county custom, so your closing costs can look different in Bowie County than in Miller County. After closing, the deed and mortgage record in the county where the property sits, and recording typically completes within a few business days depending on county workload.

Typical contract-to-close timeline

For financed purchases, most transactions close within roughly 30 to 45 days after you have an accepted offer, provided underwriting and title work stay on track. Cash purchases can finish more quickly. Lender requirements, appraisal timing, and county recording schedules can lengthen or shorten your timeline, so build in a small buffer if you have a move date.

Costs to budget and who pays

You will see many of the same line items on your settlement statement in both states. These items are common for buyers:

• Lender fees if financed, such as origination, underwriting, and appraisal
• Title-related charges, including the lender’s title policy and closing or escrow fees
• Recording fees for the deed and mortgage
• Prorations for property taxes, HOA dues, and utilities
• Inspection costs and survey if required
• Prepaid items like homeowner’s insurance, property taxes, and interest

Items that vary by local custom

Some charges, like the owner’s title policy, are often paid by sellers in parts of Texas, though this is negotiable and can vary by market. Customs in Arkansas can differ. Recording costs and clerical fees are set at the county level and will not be identical between Bowie County and Miller County. The best way to understand your costs is to request a sample Closing Disclosure or Settlement Statement for a similar property on each side.

Property taxes and homestead basics

Both states assess property taxes, but rules and exemptions differ. Texas has a distinct homestead exemption system that can affect owner-occupied tax bills and provides specific protections. Arkansas has its own assessment timelines and exemptions. If you plan to live in the home, compare recent tax bills for similar properties and review the appraisal and collection procedures with the local county offices where you are buying.

Cross-border checklist for Texarkana buyers

Use this checklist to make an apples-to-apples comparison when you are deciding between Texas and Arkansas addresses near Texarkana:

• Lender preapproval and monthly cost model: Ask your lender to quote the total monthly payment for comparable homes on both sides, including taxes, insurance, and mortgage.
• Option vs. inspection timeline: In Texas, confirm the Option Period length and fee. In Arkansas, confirm inspection windows, remedies, and termination rights.
• Earnest money logistics: Clarify how much earnest money is typical, who will hold it, and the deposit deadline.
• Title and closing agent: Confirm which title company or attorney will close, and how title insurance premiums are allocated.
• Insurance quotes: Request homeowner’s and, if applicable, flood insurance quotes for each property. Flood risk is based on FEMA designations and can vary lot by lot.
• Utilities and municipal services: Identify water, sewer, trash, and other providers for each address and note rates or fees that affect your monthly budget.
• School district boundaries: List the assigned districts for each property so you can compare based on your preferences and commute. Use neutral criteria like program offerings and location.
• Property taxes and homestead: Review county appraisal and exemption rules. Note filing steps and timelines if you plan to claim a homestead.
• Resale context: Look at local comps on both sides to understand demand drivers like jobs, taxes, and services.
• Sample settlement statement: Request a sample Closing Disclosure from a local lender or title company to see real numbers for each side.

Action steps and local support

• Get clear on your contract path. Decide whether the Texas Option Period or an Arkansas inspection contingency better fits your risk tolerance and schedule.
• Ask for written timelines. Put all deadlines on a calendar, including option or inspection periods, earnest-money deposit dates, and loan milestones.
• Price the full monthly. Compare total housing costs across options, not just the purchase price, so you can make a confident choice.
• Bring in your closing team early. Title and lender partners can spot issues with title exceptions, flood zones, or recording steps before they add stress.

When you are weighing Texas versus Arkansas in the Texarkana area, a local guide who knows both sides can make the difference. If you want personal, responsive help from search to closing, reach out to Darla Wilf for a clear plan and a smooth experience.

FAQs

What is a Texas Option Period in home buying?

• It is a negotiated short window that lets you terminate for any reason in exchange for a small option fee paid to the seller, and it is commonly included in Texas contracts using TREC forms.

Are closing timelines different in Texas vs. Arkansas near Texarkana?

• Financed deals on both sides often close in about 30 to 45 days, though lender requirements and county recording times can affect the schedule.

Who holds earnest money in Texarkana area purchases?

• The contract names the holder, which is usually a title company, attorney escrow account, or broker trust account, and you should confirm deposit timing in writing.

Who typically pays for the owner’s title insurance policy?

• It is negotiable and follows local custom, with practices that can differ between Bowie County, TX and Miller County, AR, so confirm with your title company before you write the offer.

Are property taxes higher in Texas or Arkansas for homeowners?

• Tax rates and assessments vary by county and taxing authorities, and Texas homestead exemptions can materially affect owner-occupied bills, so compare sample tax bills for similar homes in the target neighborhoods.

What should I ask my lender and title company when buying across the border?

• Request a sample Closing Disclosure with all fees, confirm who will hold earnest money and when it is due, obtain flood insurance determinations, and review title commitment exceptions early.