In Texas the signed contract decides. On the standard TREC resale form, sellers usually pay to release their loans, prepare the deed, get tax certificates, half the escrow fee and any commission they agreed to; buyers pay loan costs and the other half of escrow. Who pays the owner's title policy is a checkbox.
Texas has no single rule that says the seller pays this and the buyer pays that. What decides it is the contract you sign. Most Texas home sales use the resale contract written by the Texas Real Estate Commission (TREC), and that form spells out a default split. Anything not fixed by the form is negotiated, line by line.
This guide walks through that default split, the few items Texas regulates, and the costs that look like closing costs but are really something else. If your house is in Dallas, Tarrant, Collin or Denton County, the DFW version of this guide covers county recording fees and local tax offices.
The contract decides, and the TREC form sets the default
The current resale contract is TREC No. 20-19, which replaced 20-18 in 2026. Paragraph 12, "Settlement and Other Expenses," lists the costs each side pays at or before closing. Paragraph 6 covers the title policy and survey, and paragraph 13 covers prorations. Change a checkbox or fill in a blank and the split changes with it.
Where to look in TREC 20-19: paragraph 6A (who buys the owner's title policy), 6C (survey), 12A(1) (seller's expenses), 12A(2) (buyer's expenses), 12B (brokerage compensation) and 13 (prorations). Read your own copy; addenda and special provisions can change these items.
What a Texas seller usually pays
Under paragraph 12A(1), the seller's expenses include:
- Paying off and releasing existing liens, including any prepayment penalty and the fee to record each release.
- Release of the seller's loan liability, when the buyer takes over an existing loan.
- Tax statements or certificates showing whether any property taxes are past due.
- Preparing the deed that transfers the house.
- One-half of the escrow fee the title company charges to run the closing.
- Any amount the seller agreed to put toward the buyer's expenses, written in the blank at paragraph 12A(1)(b).
On top of that list, the seller pays for the owner's title policy if the seller box is checked in paragraph 6A, and for a survey if one of the survey options puts it on the seller.
What the buyer usually pays
Paragraph 12A(2) puts most loan-related costs on the buyer: appraisal, loan application and origination charges, credit reports, the lender's title policy and its endorsements, prepaid insurance and tax reserves, mortgage insurance, and the other half of the escrow fee. The buyer also pays the recording fees for the documents that put the house in the buyer's name. In a cash sale with no lender, most of those loan lines simply disappear.
The owner's title policy: Texas sets the price, you negotiate who pays
Title insurance is one of the larger line items, and Texas handles it differently from many states. The Texas Department of Insurance sets the premium rates, so every title company charges the same premium for the same policy. You cannot shop for a lower premium. You can still choose any title company you like, and companies may charge different escrow and service fees.
Who pays for the owner's policy is a choice in paragraph 6A, with one box for the seller's expense and one for the buyer's. TDI's own FAQ says the buyer and seller may negotiate who pays it. The lender's policy is separate, and it is a buyer expense under the standard form.
Survey costs depend on which box is checked
Paragraph 6C gives three options. The seller can hand over an existing survey with a T-47 affidavit or T-47.1 declaration from the Texas Department of Insurance. The buyer can order a new survey at the buyer's expense. Or the seller can pay for a new survey. Under the first option, if the title company or lender will not accept the old survey, the contract says who pays for the new one. If you still have the survey from when you bought, find it early; an accepted existing survey means nobody pays for a new one.
Property taxes and HOA dues are prorated, not charged
Texas property taxes are due when the bill arrives and are not delinquent until February 1 of the following year (Tax Code Sec. 31.02). That means the current year's bill often has not been paid when a house closes. Paragraph 13 of the TREC contract prorates taxes, interest, rents and regular HOA dues through the closing date. In practice the seller credits the buyer for the part of the year the seller owned the house, and the buyer pays the full bill when it comes.
Two smaller items come up here:
- Tax certificate. A tax collector must issue, on request, a certificate showing any delinquent taxes, and the fee cannot exceed $10 per certificate (Tax Code Sec. 31.08). On the TREC form this is a seller expense.
- HOA resale certificate. If the house is in a subdivision with a mandatory owners' association, the association must deliver a resale certificate within 10 business days of a proper request. It may charge up to $375 for it, and up to $75 for an update (Property Code Sec. 207.003). The contract or HOA addendum says who pays.
Commissions are negotiated, not set by law
Texas law does not set real estate commissions. The seller pays whatever brokerage fees the seller agreed to in a listing agreement. The current TREC form handles brokers in paragraph 12B, which says compensation is not set by law and is fully negotiable. Paragraph 12B(1) is an optional box where a seller can agree to put a dollar amount or a percentage of the price toward what the buyer owes the buyer's broker. If you leave it unchecked, you have not agreed to pay the buyer's agent.
Seller concessions: paying part of the buyer's costs
Paragraph 12A(1)(b) lets the seller agree to pay up to a stated amount toward the buyer's other expenses. Buyers ask for this so they bring less cash to closing. Whatever you agree to comes straight out of your net. The amount cannot go toward brokerage compensation. Paragraph 12C adds one rule: if a government loan program bars the buyer from paying certain fees, the concession pays those fees first.
A quick way to check your net
| Item | Usually paid by (TREC 20-19) | Where it is set |
|---|---|---|
| Loan payoff and lien releases | Seller | Paragraph 12A(1)(a) |
| Owner's title policy | Seller or buyer, by checkbox | Paragraph 6A; premium set by TDI |
| Lender's title policy | Buyer | Paragraph 12A(2) |
| Escrow fee | Split in half | Paragraph 12A |
| Survey | Depends on option chosen | Paragraph 6C |
| Current-year property taxes | Prorated by days owned | Paragraph 13 |
| Commissions | Whoever agreed to pay them | Listing agreement; 12B |
Start with the price, subtract your loan payoffs, your agreed commissions, your share of escrow and title, and your prorated taxes and dues. Ask the title company for a seller's estimate once you are under contract; it will list every line.
Closing costs and your income taxes
IRS Publication 523 treats selling expenses, such as agent commissions, advertising and legal fees, as reductions to the amount you realize from the sale. If you owned the home and lived in it as your main home for two of the five years before the sale, you may be able to exclude up to $250,000 of gain, or $500,000 for a married couple filing jointly. Keep your closing statement; it is the record of those expenses. A CPA can tell you how the rules apply to you.
When a cash buyer pays the closing costs
Some sellers would rather skip the line-by-line negotiation. When Cash Home Advisors buys a house, we pay all closing costs, and we can close in 7–14 days. Your loan payoff and your share of the year's property taxes still settle out of the sale price at the title company, because those are your debts, not closing costs. You see every number on the closing statement before you sign.
You can ask for a cash offer, read how our process works, or see the kinds of houses we buy. If the house is behind on payments, our page on selling before a Texas foreclosure explains the timing.
Want a cash offer instead?
We buy Texas houses as-is, pay all closing costs, and can close in 7–14 days.
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Frequently asked questions
Does a Texas seller have to pay the buyer's closing costs?
No law requires it. The TREC resale contract has a blank where the seller can agree to put a set dollar amount toward the buyer's expenses. If that blank is left empty, each side pays the items paragraph 12 assigns to it.
Can I find a cheaper owner's title policy in Texas?
Not on the premium itself. The Texas Department of Insurance sets title insurance premiums, so every title company charges the same rate for the same policy. Escrow fees and other charges can differ between companies, and you may choose any title company you want.
Who pays the escrow fee in Texas?
On the standard TREC resale contract (form 20-19), the seller and the buyer each pay one-half of the escrow fee unless they agree to something different.
Are prorated property taxes a closing cost?
Not exactly. A proration splits the current year's taxes by the days each party owns the home. The seller's share usually shows up as a credit to the buyer, because the year's bill often has not been paid yet when the house closes.
Sources
- Texas Real Estate Commission, One to Four Family Residential Contract (Resale), TREC No. 20-19
- Texas Department of Insurance, Title insurance FAQ
- Texas Tax Code, Chapter 31 (Sec. 31.02 delinquency date; Sec. 31.08 tax certificates)
- Texas Property Code, Chapter 207 (Sec. 207.003 HOA resale certificates)
- IRS Publication 523, Selling Your Home
General information, not legal or tax advice. Talk to a Texas attorney or CPA about your situation.