Technical Question about Option Money

[Stephen Gregory]

QUESTION: If a seller receives the option check after the 3rd day of signing the contract (The standard promulgated TREC contact) , is the buyer's option period still in effect or is terminated? 

In Texas, the seller must receive option and earnest money within 3 days of signing the contract. So here's what happened, there was an issue with a carrier from our tile company and option and earnest money wasn't delivered to the seller until the 4th day. However, the seller DID cash the option money on the 4th day. Now the seller's agent is saying that the buyer is going to lose their earnest money because they received the money after the 3rd day, however they did cash the option money. 

What do you think? Should my buyer be able to get his earnest money back?

Thanks in Advance?