option fees are paid after the contract is signed, and the purpose is to give the seller a window of time (anywhere from 7-10 days, usually) in which they can terminate the contract and be refunded their earnest money deposit. it’s rarely refunded at closing, but if your buyer would like to make an exception to that rule, it should be stated in the transfer contract before the option fee is paid. if the last day to deliver the fee falls on a weekend or legal holiday, the time to deliver is extended until the end of the next business day.