Who Pays Closing Costs When Selling a House in Texas?

In a typical Texas home sale, both sides pay closing costs, and who pays what is set by the contract, not by law. Custom fills in the gaps: in most Texas transactions the seller pays for the owner’s title insurance policy and their share of escrow fees, the buyer pays the costs tied to their loan, and property taxes get prorated between the two at closing.

That is the standard arrangement. Every line of it is negotiable, and in some sale types the buyer picks up all of it. Here is the full picture so nothing at the closing table surprises you.

What Texas Sellers Usually Pay

• Owner’s title insurance policy. By long-standing Texas custom the seller buys the owner’s policy that protects the buyer’s ownership. Texas title insurance premiums are regulated by the state and scale with the sale price; on a mid-priced home this is often the seller’s largest closing cost after commissions.
• Escrow or settlement fee. The title company charges a fee to run the closing. It is commonly split between buyer and seller, a few hundred dollars per side.
• Prorated property taxes. Texas property taxes are paid in arrears, so at closing you credit the buyer for the portion of the year you owned the home. Sell in October and you are crediting roughly ten months of that year’s tax bill.
• Agent commissions, if listed. Commonly 5 to 6 percent combined for listing and buyer agents. This is the largest seller cost in a traditional sale and the line that disappears entirely in a direct sale.
• Smaller items. Recording fees for releasing your existing liens, HOA transfer or resale certificate fees where applicable, courier fees, and any unpaid utility or HOA balances.
• Loan payoff. Not a closing cost exactly, but your mortgage balance plus accrued interest is paid from proceeds at closing. The title company handles the payoff directly with your lender.

What Buyers Usually Pay

Buyers cover the costs created by their financing: lender fees, appraisal, the lender’s title policy, survey (often negotiated), their share of escrow, and their own recording fees. None of this comes out of your pocket in a standard contract.

What It Adds Up To

For a Texas seller in a traditional listed sale, total transaction costs commonly land between 7 and 9 percent of the sale price once commissions, title policy, escrow, tax prorations, and small fees stack up. On a $300,000 sale that is roughly $21,000 to $27,000 before any repair credits a buyer negotiates after inspection.

Our net proceeds calculator runs your actual numbers, and our glossary of cash-sale terms explains any line item your settlement statement throws at you.

The Sale Type Where the Seller Pays Nothing

Direct cash buyers commonly cover all standard closing costs as part of the offer. That is how we operate at Oxbow Home Solutions: the written offer you accept is the amount you receive at closing, before any loan payoff. No commissions on either side, no service fee, and the title policy, escrow, and recording costs are ours.

The honest caveat: a cash offer on an as-is house is below the price a renovated, professionally listed version might bring. The comparison that matters is net-to-you after every cost, repair, and month of carrying the property. Sometimes the listing wins that math. For houses needing work or sellers on a deadline, the direct sale often does. We buy in Dallas, Fort Worth, Houston, San Antonio, Austin, Arlington, Plano, and across Texas.

Frequently Asked Questions

Are closing costs required by Texas law to be split a certain way? No. Everything is set by the purchase contract. The customs described above are defaults that most contracts follow, but any line can be negotiated to either side.

Do I pay closing costs if I sell to a cash buyer? With most direct buyers, including us, no. The buyer covers standard closing costs and there are no commissions. Confirm it in writing in the contract before you sign.

What happens to my property taxes at closing? They are prorated. You credit the buyer for the days you owned the home that tax year, and the buyer pays the full bill when it comes due. The title company calculates this to the day.

Does the seller pay for a survey in Texas? Negotiable. If you have an existing survey, many contracts let you provide it with an affidavit instead of paying for a new one. Otherwise the contract assigns the cost to one side, often the buyer.

Are there transfer taxes when selling a house in Texas? No. Texas has no real estate transfer tax and no state income tax. Federal capital gains rules still apply; see our guide to taxes on a cash sale for how the exclusion works on a primary residence.