Seller closing costs in Texas: what you pay and what comes out of your proceeds
Updated Nov 7, 2026. By Hilda Avila, REALTOR®, Ebby Halliday Real Estate, LLC.
Short answer: In Texas, the sales contract decides who pays each seller closing cost, and many items are negotiable. Under the standard TREC resale contract, sellers pay off the mortgage, release liens, prepare the deed, split the escrow fee and cover property taxes through closing. The title policy, survey, HOA fees and concessions depend on your deal.
This guide walks through the lines on a seller’s closing statement, where each one comes from, and what you can negotiate. It covers resale homes under the TREC One to Four Family Residential Contract (Resale), form 20-19, effective July 1, 2026. Condominium sales use a different contract, and builder-sold new homes usually use the builder’s own contract, so ask your title company about those. To compare two offers by net proceeds, see how to compare offers on your net.
What do sellers pay at closing in Texas?
Your signed contract allocates many closing expenses, subject to applicable law and to separate agreements such as brokerage agreements. Here is how the standard form assigns each item.
| Cost | Who pays under the form | Where it comes from |
|---|---|---|
| Mortgage payoff | Seller, except for a loan the buyer assumes under the contract. ¶9B(4) requires that no liens, assessments or security interests remain that will not be satisfied out of the sales proceeds, other than those securing a loan the buyer assumes. Your lender’s payoff statement gives the real figure. | ¶9B(4) |
| Release of liens, prepayment penalties, recording of the releases | Seller | ¶12A(1)(a) |
| Preparing the deed | Seller | ¶12A(1)(a) |
| Tax certificates | Seller. The tax collector’s fee is capped at $10 per certificate. Title companies often add their own charges, so ask. | ¶12A(1)(a); Tax Code §31.08(a); TDI title FAQ |
| Escrow fee | Split: one-half seller, one-half buyer. The amount varies by title company. | ¶12A(1)(a), ¶12A(2); TDI title FAQ |
| Owner’s title policy | Negotiated: the contract has a Seller’s or Buyer’s box | ¶6A |
| Survey | Negotiated: three choices, described below | ¶6C |
| Amending the survey exception in the title policy | Negotiated: the contract has a Seller’s or Buyer’s box | ¶6A(8) |
| Copies of the title exception documents and restrictions | Buyer | ¶6B, ¶12A(2) |
| HOA resale certificate and updates | Negotiated through the HOA addendum | TREC 36-11 ¶A |
| HOA transfer-related fees | Buyer up to a dollar amount written in the addendum; seller pays any excess | TREC 36-11 ¶C |
| Private transfer fees | Seller, unless the contract says otherwise | ¶9B(5) |
| Property taxes and HOA dues for the current period | Prorated through the closing date | ¶13 |
| Concessions toward the buyer’s costs | Only if you agree, up to a dollar amount you write in | ¶12A(1)(b), ¶12C |
| Agreed repairs | Seller pays for repairs the parties agree to in writing | ¶7D(2), ¶7F |
| Residential service contract (home warranty) | Optional for the buyer. If the buyer buys one, the seller reimburses the cost at closing up to the dollar amount written in | ¶7H |
| Brokerage compensation | Under the written agreements you make with the brokers | ¶12B |
Where does each cost come from?
Most lines trace to one of four places: the contract’s closing paragraph (¶12), the title paragraph (¶6), the property-condition paragraphs (¶7), or an addendum such as the HOA addendum. State law adds a few caps and deadlines, and your title company’s closing statement shows the final numbers.
Who pays for the owner’s title policy in Texas?
The contract has a box in ¶6A: either the seller or the buyer pays for the owner’s policy. It is negotiable, and nothing in the form makes one side pay by default. The price is not negotiable. The Texas Department of Insurance sets title insurance rates, and TDI says every title company charges the same premium for a policy. Under TDI’s rate chart effective March 1, 2026, a policy from $100,001 to $1,000,000 costs $780 plus 0.00494 times the amount over $100,000, rounded to the nearest dollar. That is the basic premium only, so ask your title company about anything beyond it.
Who pays for the survey?
¶6C gives three choices, and the contract says to check one box only. (1) The seller furnishes the existing survey plus a T-47 Affidavit or T-47.1 Declaration. (2) The buyer may obtain a new survey at the buyer’s expense. (3) The seller furnishes a new survey at the seller’s expense. Under choice (1), if the seller does not furnish both the existing survey and the affidavit or declaration within the time written in the contract, the buyer must obtain a new survey at the seller’s expense no later than 3 days before the Closing Date. If the title company or the buyer’s lender does not accept the existing survey, or the affidavit or declaration, the buyer must obtain a new survey, paid for by whichever party the box in ¶6C(1) names. Your title company can tell you whether your existing documents will be accepted.
How are property taxes handled when I sell?
At closing, the contract prorates taxes through the closing date. You credit the buyer for the days you owned the home in that tax year. The proration may take any exemption change into account. If the actual current-year taxes differ from the amount prorated at closing, ¶13 says the parties shall adjust the prorations when the current-year tax statements are available. Texas tax bills start going out in October and are normally due by January 31. They are delinquent if unpaid before February 1 of the following year (Tax Code §31.02(a); Comptroller). If taxes are unpaid at closing, the buyer pays the current-year bill when it arrives, which is why the credit matters.
What HOA fees come up when I sell?
If the home is in a mandatory HOA, the TREC 36-11 addendum applies. The parties check a box for who obtains and pays for the Subdivision Information, which is the restrictions, the bylaws and rules, and the resale certificate. Under Texas Property Code §207.003, the association must deliver that information within 10 business days after it receives a written request and, where required, receives and verifies the requestor’s authority. It may charge a reasonable and necessary fee of up to $375 to assemble, copy and deliver the information, and up to $75 to prepare and deliver an update of the resale certificate. It may not charge a fee if the certificate is not provided on time. Chapter 207 does not apply to condominium associations. Association fees, deposits, reserves and other transfer charges are separate: under TREC 36-11 ¶C they are the buyer’s up to a dollar amount written in the addendum, and the seller pays any excess. Regular dues are prorated at closing.
What costs does the seller not pay?
¶12A(2) lists the buyer’s expenses, including appraisal fees, loan application and origination charges, credit reports, loan documents, recording fees, copies of easements and restrictions, the lender’s title policy, loan-related and repair inspection fees, prepaid items such as insurance premiums and taxes, and the other half of the escrow fee. Not every item on the buyer’s statement is yours.
Can a buyer ask me to pay their closing costs?
Yes, the contract has a place for it. In ¶12A(1)(b), the seller can agree to pay up to a dollar amount toward the buyer’s expenses. That money comes out of your proceeds, and it cannot be applied to brokerage compensation. Whether to agree, and how much, is a negotiating choice.
Is the real estate commission a closing cost?
It is paid at closing, but it is not set by law. The TREC contract says brokerage compensation is fully negotiable. Compensation is governed by the written agreements you make with the brokers, and ¶12B only records contributions toward them. I explain my written listing agreement before we list. You can read more on my seller page.
What does a seller’s closing statement look like?
When the buyer finances with a mortgage covered by the federal rule, the settlement agent must give the seller the seller’s side of the Closing Disclosure no later than the day of consummation, which the rule defines as the time the buyer becomes contractually obligated on the loan. It can be on a separate seller page or combined (12 CFR §1026.19(f)(4), §1026.38(t)(5)). The seller’s table shows the sale price, the amounts due from you such as your mortgage payoff and seller-paid closing costs, the tax adjustments, and a final line labeled “Cash” to or from you (12 CFR §1026.38(k)). Ask your title company early to show you a sample.
Example only: a $400,000 sale
The sale price, payoff, tax bill and closing date below are made-up inputs to show the math. They are not figures from any real sale, and they are not typical or average figures. Only the title premium formula comes from an official rate table. This is an illustration, not a quote.
| Line | Example amount | How it’s figured |
|---|---|---|
| Sale price | $400,000 | Input (made up) |
| Mortgage payoff | −$250,000 | Input (made up). The real figure is on your lender’s payoff statement |
| Owner’s title policy (only if the contract makes it a Seller’s Expense) | −$2,262 | TDI rate chart effective March 1, 2026: ($400,000 − $100,000) × 0.00494 = $1,482; $1,482 + $780 = $2,262. Basic premium only |
| Property tax credited to the buyer | −$5,326 | Inputs (made up): $8,000 annual tax bill; closing on Aug 31 of a non-leap year (243 of 365 days). $8,000 × 243 ÷ 365 = $5,326.03 |
| Running subtotal | $142,412 | $400,000 − $250,000 − $2,262 − $5,326. This is not your net |
Still to come out, with amounts that vary: half the escrow fee (ask your title company for its quote), HOA fees if any, the survey if you pay for it, agreed repairs or concessions, tax certificates, deed preparation, recording of lien releases, and brokerage compensation under your written agreements. The tax line is an estimate. Under ¶13, if the actual current-year taxes differ from the amount prorated at closing, the parties shall adjust the prorations when the current-year tax statements are available.
For a larger side-by-side example and a worksheet, see the $500,000 net-proceeds comparison.
Gather the quotes behind your seller net sheet
For a Collin or Denton County sale, use documents for your own property and contract rather than a general closing-cost percentage. The worksheet below helps you gather the inputs for a title-company estimate. It does not decide who pays an item; check your signed contract, addenda and separate agreements.
Write the quote date and its assumptions beside each figure. Leave an amount blank until you have information, and identify uncertain items as estimates. Do not enter zero just because a document has not arrived.
| Line to confirm | Where the figure comes from | Amount or adjustment | Date / assumptions / who pays |
|---|---|---|---|
| Sale price | Written offer or signed contract | ||
| Mortgage and other lien payoffs | Current payoff statements obtained through the appropriate lender/lienholder and title process | ||
| Brokerage compensation and any agreed contributions | Signed brokerage agreements and applicable contract terms | ||
| Owner’s title policy and any endorsements | Title company’s itemized quote and contract allocation | ||
| Escrow/settlement fee and other title charges | Itemized title-company quote and contract allocation | ||
| Survey and related affidavit/declaration work | Contract choice, title/lender acceptance and surveyor quote where needed | ||
| Property-tax debit or credit | Tax records and title company’s proration calculation | ||
| HOA dues proration and balances | Association account statement and title calculation | ||
| HOA resale certificate, update and transfer-related charges | Association quote/documents and signed HOA addendum | ||
| PID or other assessment treatment, if applicable | Current assessment information, payoff/proration instructions and title review | ||
| Agreed repairs or repair credits | Signed agreement/amendment and invoices or quotes | ||
| Buyer expense concessions | Signed contract and amendments | ||
| Any residential service contract contribution | Contract and provider quote, if applicable | ||
| Other release, recording, deed or certificate charges | Title company’s itemization and supporting documents | ||
| Other property-specific adjustments | Supporting document identified by title company | ||
| Estimated cash to or from seller | Title company’s reconciled seller net sheet |
Ask these questions before relying on the total
- Which date is the estimate based on? A different closing date can affect payoff interest and prorations. Ask whether a quote has expired or needs refreshing.
- Is the payoff an actual payoff statement? The balance shown on a monthly mortgage statement is not necessarily the amount required to release the loan at closing.
- Are taxes and assessments separate where they need to be? Ask which year, exemptions and assessment records were used, and how any later adjustment will be handled under your agreement.
- Has each cost or credit been counted once? Ask the title company to reconcile deposits, credits and concessions rather than subtracting them again yourself.
- Does the estimate match your offer? If you compare offers, use the concessions, closing dates and other terms from each offer, not one shared fee assumption.
- What is still missing? Mark unreceived payoff statements, association information or repair quotes so an incomplete estimate does not look final.
The Texas Department of Insurance’s title-insurance FAQ distinguishes regulated policy premiums from other closing charges and recommends reviewing extra charges and supporting documentation. Ask the title company for a current itemized quote; this worksheet does not quote a premium.
Before signing the closing statement
Compare the latest statement with your contract, amendments, agreements and current quotes. Ask the title company to explain unexpected lines and confirm how the final cash figure is calculated. A planning estimate is not a guarantee of proceeds or an appraisal.
Contact Hilda about reviewing an offer and estimated selling costs. Share your city and selling plans first; do not send loan numbers, wiring instructions or unredacted payoff statements through the general contact form.
For a decision between offers, continue to the offer-comparison and net-proceeds guide. A title professional supplies the closing figures; a CPA or attorney can advise on tax or legal questions.
How do I estimate what I’ll net?
Start with the sale price, subtract your payoff, then ask your title company for a net sheet that lists each remaining line. Replace estimates with real quotes as they arrive. A free home valuation gives you a price range to start from. If federal reporting forms or withholding apply to your sale, the escrow agent will tell you what they need (¶20), and a CPA can answer tax questions.
Frequently asked questions
Who pays for the owner’s title policy in Texas?
It is negotiated. The TREC contract has a box for Seller’s or Buyer’s expense (¶6A). The premium itself is set by the Texas Department of Insurance, so every title company charges the same basic premium for the same policy amount. Ask your title company for the premium at your price, and check which box your contract has checked.
How are property taxes handled when I sell a home in Texas?
The contract prorates current-year taxes through the closing date, so you credit the buyer for the days you owned the home. Bills go out starting in October and are normally due by January 31. If the taxes are not paid at or before closing, the buyer pays the current-year taxes. If the actual current-year taxes differ from the amount prorated at closing, the parties shall adjust the prorations when the current-year tax statements are available (¶13).
Who pays HOA fees when a Texas home is sold?
It depends on the HOA addendum. The parties choose who obtains and pays for the Subdivision Information, which includes the resale certificate. The buyer pays association transfer fees, deposits and reserves up to a dollar amount written in the addendum, and the seller pays any excess. Regular dues are prorated at closing. Where Texas Property Code chapter 207 applies, the association’s fee to assemble, copy and deliver the required information may not exceed $375 (Property Code §207.003).
Is the real estate commission negotiable in Texas?
Yes. The TREC contract says brokerage compensation is not set by law and is fully negotiable. It is set in written agreements between you and the brokers, and any amount in the sales contract only records contributions toward them. Ask any agent to explain their written agreement before you sign.
Can a buyer ask the seller to pay their closing costs?
A buyer can ask, and the contract has a place for it. A seller can agree to pay up to a stated dollar amount toward the buyer’s expenses (¶12A(1)(b)). That amount comes out of the seller’s proceeds and cannot be applied to brokerage compensation. Whether to agree, and how much, is up to you.
Want help working out your numbers?
If you are thinking about selling, you can request a free home valuation, book a time to talk through your plan, or call or text me at (469) 802-8711. I work with sellers in Frisco, Plano, McKinney and Allen.
Sources
As of Oct 29, 2026 (read that day; the brief’s sources were first checked Oct 26, 2026):
- TREC One to Four Family Residential Contract (Resale), form 20-19, effective 07/01/2026.
- TREC Addendum for Property Subject to Mandatory Membership in a Property Owners Association, form 36-11.
- Texas Department of Insurance, basic premium rate chart for title insurance, effective March 1, 2026, and TDI’s title insurance FAQ.
- Texas Property Code §§207.002, 207.003; Texas Tax Code §§31.01, 31.02, 31.08(a); Texas Comptroller, “Paying Your Taxes”.
- 12 CFR §1026.2(a)(13), §1026.19(f)(4) and §1026.38(k), (t)(5) (Closing Disclosure, seller’s transaction).
This guide is general information about common Texas practices and the standard TREC contract. It is not legal, tax or accounting advice, and it is not a quote or an estimate for any home. Your obligations depend on your signed contract, applicable law, and any separate agreements. Review the settlement statement against those documents and ask about any discrepancy before closing. For questions about your contract, taxes or legal rights, talk with your title company, a CPA or tax professional, or a real estate attorney.