Texas Closing Costs for Sellers: Who Pays What
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Last updated November 14, 2026. Citations come from the Texas statutes and official agency pages linked in Sources. Where we could not confirm something on an official page, we say so.
Who pays which Texas closing costs depends mostly on the contract. The Texas Real Estate Commission’s resale contract, Form 20-19, splits them: the seller pays lien releases, tax certificates, deed preparation and half the escrow fee, and the buyer pays loan costs and the other half of the escrow fee. This guide summarizes that form and the Consumer Financial Protection Bureau’s description of closing costs. We did not find an official page on Texas typical seller cost percentages.
What the CFPB says
The CFPB says that when you buy a home you generally pay all the costs of the transaction, but depending on the contract or state law the seller may end up paying some of them.
Common closing charges include appraisal fees, tax service provider fees, title insurance, government taxes and prepaid expenses such as property taxes, homeowners insurance and interest until the first payment.
A seller credit toward closing costs may require a higher home price, and a lender credit usually means a higher loan amount or interest rate.
What the TREC resale contract says
TREC Form 20-19, One to Four Family Residential Contract (Resale), splits the costs in paragraph 12:
- Seller pays: releases of existing liens including prepayment penalties and recording fees, release of the seller’s loan liability, tax statements or certificates, preparation of the deed, one-half of the escrow fee and any seller concession written in the form.
- Buyer pays: appraisal fees, loan fees, recording fees, the loan title policy with lender endorsements, one-half of the escrow fee, prepaid items, mortgage insurance or funding fees and other loan-related expenses.
- Title policy: paragraph 6A has a checkbox that says whether the seller or buyer pays.
- Brokerage compensation: paragraph 12B says compensation is not set by law and is fully negotiable.
- Prorations: current-year taxes, interest, rents and maintenance fees are prorated through the closing date (paragraph 13).
- Private transfer fees: the seller’s obligation unless the contract says otherwise (paragraph 9B(5)).
A state transfer tax
We did not find an official page that says Texas has no state real estate transfer tax, so we do not state it as confirmed. The Comptroller search we ran returned only a statement about no state property tax, which is a different tax. Ask your title company for the itemized closing statement.
What a seller nets
Add up the mortgage payoff, unpaid property tax, seller-paid costs in the contract, agent compensation if you list, and any repairs you agree to make. The title company produces a settlement statement before closing. Our cash offers have no agent commission and no closing costs charged to you, and we buy as-is. For tax on any gain, see Texas capital gains on a home sale.
How to sell a house in Texas when you want to know what it costs
- Ask the title company for an estimated settlement statement so you can see every line before you decide.
- Get a payoff for any mortgage and the amount of any unpaid property tax. Both are paid from the sale proceeds at closing.
- Compare offers on what you net after repairs, commissions and closing costs, not on the headline price.
- If you want a fast, simple closing, ask for a written cash offer. We buy houses as-is, with no repairs and no agent commission. See how we buy houses in Texas.
Texas closing costs FAQ
Who pays closing costs in Texas?
It depends on the contract. TREC Form 20-19 assigns lien releases, tax certificates, deed preparation and half the escrow fee to the seller, and loan costs and the other half of the escrow fee to the buyer (paragraph 12A).
Is real estate commission set by law in Texas?
No. Form 20-19 says brokerage compensation is not set by law and is fully negotiable (paragraph 12B).
Who pays for the title policy?
The form has a checkbox that says whether the seller or the buyer pays (paragraph 6A).
Are property taxes prorated at closing?
Current-year taxes are prorated through the closing date, and if not paid at or before closing the buyer pays them (paragraph 13).
Sources
- TREC Form 20-19, One to Four Family Residential Contract (Resale)
- TREC: Contracts and forms
- CFPB: What fees or charges are paid when closing on a mortgage and who pays them
This guide is general information, not legal or tax advice. Laws, forms and fees change, so confirm details with the official office or a Texas attorney or tax professional.