Sellers closing costs in Texas come out of your sale proceeds, and the standard TREC resale contract spells out most of them. Under that form, the seller pays to release existing liens (your mortgage payoff, any prepayment penalty, and recording fees), tax statements or certificates, deed preparation, and one-half of the escrow fee. On top of that, sellers often owe their share of the year's property taxes through the closing date, and they may agree to pay the owner's title policy, a survey, HOA transfer fees over a set cap, repairs, and a credit toward the buyer's costs. Brokerage compensation is not set by law and is fully negotiable.
I'm Taylor Ring, a Mortgage Loan Officer with Fairway Independent Mortgage Corporation (The Wood Group) in Belton. I work on the buyer's loan, which means I see the seller's side of the deal up close: the credits, the prorations, and the payoff. This guide walks through each seller line using TREC's One to Four Family Residential Contract (Resale), form 20-19, effective July 1, 2026, plus the official rules behind it. If you're the buyer, my closing costs in Texas guide covers your side.
Selling one home and buying the next? Get Pre-Approved or Book a Free Consultation.
Who Pays Closing Costs in Texas: The Short Version
The CFPB puts it simply: the buyer generally pays the costs tied to buying, but "depending on the contract or state law, the seller may end up paying for some of these costs." In Texas, that contract is usually TREC form 20-19. Here's how its default language splits the main items:
| Cost | Who Pays Under TREC 20-19 | Negotiable? |
|---|---|---|
| Mortgage payoff, lien releases, prepayment penalties | Seller (Paragraph 12A(1)(a)) | No, liens must be cleared |
| Tax statements or certificates | Seller (12A(1)(a)) | Set by the form |
| Deed preparation | Seller (12A(1)(a)) | Set by the form |
| Escrow fee | Split, one-half each (12A(1) and 12A(2)) | Can be changed by agreement |
| Owner's title policy | Seller or buyer, whichever box is checked (6A) | Yes |
| Lender's title policy | Buyer (12A(2)) | Seller credit can help |
| Survey | Depends on the option checked (6C) | Yes |
| Appraisal, lender fees, prepaids | Buyer (12A(2)) | Seller credit can help |
| Brokerage compensation | Per each party's written agreements (12B) | Fully negotiable |
| HOA transfer fees | Buyer up to a cap, seller pays any excess (TREC 36-11) | Yes, the cap is filled in |
| Residential service contract | Seller reimburses buyer up to the amount written in (7H) | Yes |
| Private transfer fees | Seller, unless the contract says otherwise (9B(5)) | Yes |
| Property taxes, HOA dues | Prorated through the closing date (13) | Set by the form |
VA's own list of costs buyers and sellers can negotiate includes real estate commissions, the loan origination fee, discount points, the appraisal fee, title insurance, hazard insurance and real estate taxes, and recording fees. So "who pays" really means "what did the contract say?"
What Sellers Pay in Texas, Line by Line
Your Mortgage Payoff and Lien Releases
This is usually the biggest number on a seller's statement. At closing, Paragraph 9B(4) says there can be no liens, assessments, or security interests on the property that won't be paid off from the sale proceeds, unless the buyer is assuming a loan. Paragraph 12A(1)(a) makes the seller responsible for "releases of existing liens, including prepayment penalties and recording fees" and the "release of Seller's loan liability."
What to do early:
- Ask your servicer how your payoff is calculated and whether your note has a prepayment penalty
- List every lien: a second mortgage, a home equity loan, a HELOC, a solar or improvement lien, or a judgment
- Keep making your payments until closing unless your servicer tells you otherwise in writing
Tax Certificates, Deed Preparation, and Half the Escrow Fee
The seller signs and delivers a general warranty deed and furnishes tax statements or certificates showing no delinquent taxes (Paragraph 9B(1)). The cost of preparing that deed and those tax certificates sits on the seller's list in 12A(1)(a), along with one-half of the escrow fee. The other half is on the buyer's list.
Delinquent taxes matter here. The Texas Comptroller explains that a tax lien attaches to property on January 1 each year, and a buyer "cannot obtain a clear title until all the delinquent taxes owed on the property are paid in full." Any past-due taxes get paid from your proceeds.
The Owner's Title Policy: A Checkbox, Not a Rule
Paragraph 6A says the seller shall furnish the buyer an owner policy of title insurance "at Seller's / Buyer's expense," and the parties check one box. The Texas Department of Insurance says it directly: "The buyer and seller may negotiate who pays the premium."
What isn't negotiable is the price. TDI promulgates title premiums, so every title company charges the same basic premium for the same policy amount. Under TDI's rates effective March 1, 2026, the basic premium for a policy from $100,001 to $1,000,000 is $780 plus 0.00494 times the amount over $100,000, rounded to the nearest dollar.
Hypothetical examples, basic premium only, using TDI's March 1, 2026 formula:
| Sales Price (Policy Amount) | Owner's Policy Basic Premium |
|---|---|
| $250,000 | $1,521 |
| $300,000 | $1,768 |
| $400,000 | $2,262 |
Endorsements and other title company charges, like escrow fees, are separate.
One related choice: Paragraph 6A(8) lets the parties amend the survey exception in the owner's policy to read "shortages in area," and the contract has a box for whether the buyer or the seller pays for that amendment.
The Survey
Paragraph 6C gives three options, and only one gets checked:
- Seller furnishes an existing survey plus a TDI T-47 Affidavit or T-47.1 Declaration by a set number of days. If the seller doesn't deliver both on time, the buyer gets a new survey at the seller's expense. If the title company or lender won't accept the existing survey, a new one is ordered at whichever party's expense is checked.
- Buyer gets a new survey at the buyer's expense.
- Seller furnishes a new survey at the seller's expense.
If you have your survey from when you bought, find it now. Not having it on time can shift a new survey's cost to you under option 1.
Brokerage Compensation Is Negotiable
TREC's form says it in one line: "Brokerage compensation is not set by law and is fully negotiable." Under Paragraph 12B, each party pays its own broker under its own written agreement. The contract also has optional boxes where the seller agrees to pay a dollar amount or percentage toward the buyer's broker, or the buyer agrees to pay toward the seller's broker. Those contributions are separate from the seller credit for the buyer's closing costs in 12A(1)(b), which can't be applied to brokerage compensation.
I don't quote commission percentages. There's no official rate, and your listing agreement is between you and your broker.
HOA Transfer Fees and the Resale Certificate
If the home is in a mandatory property owners association, TREC's Addendum for Property Subject to Mandatory Membership in a Property Owners Association (form 36-11) sets who pays what:
- Subdivision information (the restrictions, bylaws, rules, and resale certificate under Texas Property Code 207.003): the box checked says whether the seller obtains and pays for it or the buyer does. If the buyer already has it and wants an updated resale certificate, that's at the buyer's expense.
- Transfer fees, deposits, and reserves: "Buyer shall pay any and all Association fees, deposits, reserves, and other charges associated with the transfer of the Property not to exceed $___ and Seller shall pay any excess." Regular dues are prorated separately.
That blank is a negotiation. Ask your HOA's management company for its transfer-related fees before you sign, so you know what "any excess" could mean.
Private Transfer Fees
Some Texas properties carry a private transfer fee obligation under Chapter 5, Subchapter G of the Texas Property Code. Paragraph 9B(5) makes those "the obligation of Seller unless provided otherwise in this contract." HOA transfer fees are handled by the 36-11 addendum instead.
Prorated Property Taxes: The Line That Surprises Sellers
Paragraph 13 says taxes for the current year, interest, rents, and regular HOA dues "will be prorated through the Closing Date." Here's why that usually shows up as a seller charge.
The Texas Comptroller says taxing units start mailing tax bills in October, and in most cases taxes must be paid by January 31. So a closing in, say, June happens before that year's bill has been paid. The seller owned the home from January 1 to closing, so the seller's share is credited to the buyer, and the buyer later pays the full bill.
Hypothetical example: if a home's estimated annual taxes were $6,000 and the sale closed June 30, the seller's share for January 1 through June 30 would be about $2,975 (181 of 365 days). The title company calculates the exact figure.
Three details from Paragraph 13 worth knowing:
- Exemptions count. The proration "may be calculated taking into consideration any change in exemptions that will affect the current year's taxes." If you have a homestead or over-65 exemption, ask how the title company is treating it. My guides on filing a homestead exemption and the over-65 exemption explain how those work.
- It gets trued up. If the actual bill differs from the estimate, "the parties shall adjust the prorations when tax statements for the current year are available."
- January 1 ownership matters. The Comptroller notes that each person who owns taxable property on January 1 is liable for that year's taxes and can be sued for delinquent taxes even after selling.
Regular HOA dues get the same treatment: prorated through the closing date.
Repairs: What the Contract Does and Doesn't Require
Repairs are where seller costs swing the most, and TREC 20-19 is specific:
- As Is or specific repairs (7D). The buyer accepts the property As Is, or As Is with a list of specific repairs the seller completes at the seller's expense. The form tells you not to use general phrases like "subject to inspections."
- Lender-required repairs (7E). Unless agreed in writing, neither party is obligated to pay for lender-required repairs, including wood-destroying insect treatment. If nobody agrees to pay, the contract terminates and the buyer gets the earnest money back. If those repairs cost more than 5% of the sales price, the buyer may terminate.
- Completing repairs (7F). Agreed repairs are done before closing by licensed or commercially engaged providers, with permits if required. The seller provides documentation and, at the seller's expense, arranges the transfer of any transferable warranties.
- Utilities (7A). The seller keeps existing utilities on, at the seller's expense, while the contract is in effect, so inspections and the appraisal can happen.
Most repair requests come during the buyer's option period. My guide to the Texas option period and option fee explains that window, and my earnest money guide covers what happens to the deposit.
Seller Credits Toward the Buyer's Costs
Paragraph 12A(1)(b) has a blank for "an amount not to exceed $___ to be applied to Buyer's Expenses other than brokerage compensation." Paragraph 12C adds that if a government loan program prohibits the buyer from paying certain fees, the credit goes to those first.
The CFPB points out the trade-off for buyers: the seller "will usually require you to pay a higher price for the home in order to cover the costs of this credit." For sellers, the question is how much the buyer's loan allows:
| Buyer's Loan | Limit on Seller-Paid Costs | Source |
|---|---|---|
| Conventional (Fannie Mae), primary home or second home | 3% over 90% LTV, 6% at 75.01% to 90%, 9% at 75% or less | Fannie Mae B3-4.1-02 |
| Conventional (Fannie Mae), investment property | 2% | Fannie Mae B3-4.1-02 |
| FHA | Up to 6% of the sales price toward origination fees, other closing costs, prepaids, and discount points | HUD Handbook 4000.1 |
| VA | No limit on credits for the loan's closing costs; seller concessions capped at 4% of reasonable value | VA |
| USDA | Up to 6% of the sales price toward financing costs, closing costs, and escrows | 7 CFR 3555.102 |
A few details sellers miss:
- Fannie Mae measures against the lower of the sales price or appraised value, not the loan amount. Fees a seller pays by local custom ("common and customary" costs) don't count toward Fannie's limit. A credit larger than the buyer's actual closing costs is treated as a sales concession and reduces the price for loan purposes.
- VA concessions are anything of value added at no cost to the buyer, such as paying the VA funding fee, paying off the buyer's debts, or prepaying hazard insurance. Normal closing cost credits fall outside the 4% cap.
- USDA doesn't let seller-paid costs also be included in the guaranteed loan.
If you're not sure which loan your buyer is using, ask the buyer's agent. The answer changes how much of a credit can actually be used. More on each loan type: conventional, FHA, and VA.
A Few Other Seller Items
- Possession after closing. Under Paragraph 10, possession transfers at closing and funding unless there's a written lease. If you need a few extra days, TREC has a Seller's Temporary Residential Lease. Possession without a written lease creates a tenancy at sufferance, and the form warns that insurance coverage may be limited.
- Foreign sellers. If a seller is a "foreign person" under the Internal Revenue Code, or doesn't deliver a certificate of non-foreign status, Paragraph 20A requires the buyer to withhold enough from the proceeds to comply with tax law.
- Damage before closing. Paragraph 14 requires the seller to restore the property after a fire or other casualty by the closing date, or the buyer gets options including termination.
Your Seller Closing Cost Checklist
Before you list, gather or ask for:
- Payoff information for every loan or lien on the property
- Your existing survey, and whether you can sign a T-47 or T-47.1
- HOA contact information and its transfer and resale certificate fees
- Your most recent tax statement and your exemptions
- Your listing agreement, so you know what brokerage compensation you've agreed to
- An estimated net sheet from the title company once you have an offer
Frequently Asked Questions
What closing costs do sellers pay in Texas?
Under the standard TREC resale contract, sellers pay to release existing liens, including their mortgage payoff, prepayment penalties, and recording fees, plus tax statements or certificates, deed preparation, and one-half of the escrow fee. Sellers also owe their prorated share of property taxes and HOA dues, and may agree to pay the owner's title policy, a survey, repairs, HOA fees over a cap, and a credit toward the buyer's costs.
Who pays closing costs in Texas, the buyer or the seller?
Both do, based on the contract. The buyer generally pays loan-related costs like the appraisal, lender fees, the lender's title policy, and prepaids, while the seller pays to clear liens, the deed, tax certificates, and half the escrow fee. Many other items, including the owner's title policy, the survey, and seller credits, are negotiable.
Does the seller pay the owner's title policy in Texas?
Not automatically. The TREC resale contract has a box for whether the owner's title policy is at the seller's or the buyer's expense, and the Texas Department of Insurance says the buyer and seller may negotiate who pays. The premium itself is set by the state, so it is the same at every title company.
How are property taxes prorated when you sell a house in Texas?
The TREC contract prorates the current year's taxes through the closing date. Because Texas tax bills generally go out starting in October and are due by January 31, the seller's share for January 1 through closing is often credited to the buyer, who then pays the full bill, and the parties adjust if the actual bill differs from the estimate.
How much can a seller pay toward a buyer's closing costs in Texas?
It depends on the buyer's loan. Fannie Mae conventional loans allow 3%, 6%, or 9% depending on the down payment for a primary home, FHA allows up to 6% of the sales price, USDA allows up to 6%, and VA does not limit credits for normal closing costs but caps seller concessions at 4% of reasonable value.
Let's Look at Both Sides of Your Move
If you're selling and buying in Central Texas, I can help you plan the purchase side with real numbers, including how a seller credit on your next home would fit your loan.
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Related Guides
- Closing Costs in Texas: What Buyers Pay
- Texas Option Period and Option Fee
- Earnest Money in Texas
- How to File a Homestead Exemption in Texas
- Texas Homestead Exemption Over 65
- Conventional Loans
Sources
- TREC One to Four Family Residential Contract (Resale), form 20-19 (Paragraphs 6, 7, 9, 10, 12, 13, 14, and 20)
- TREC Addendum for Property Subject to Mandatory Membership in a Property Owners Association, form 36-11
- Texas Department of Insurance: Title insurance FAQs and 2026 title insurance rates
- Texas Comptroller: Paying Your Property Taxes
- CFPB: What fees or charges are paid when closing on a mortgage and who pays them?
- Fannie Mae Selling Guide B3-4.1-02, Interested Party Contributions
- HUD Single Family Housing Policy Handbook 4000.1
- VA: Funding fee and closing costs
- 7 CFR 3555.101 and 7 CFR 3555.102
Taylor Ring, NMLS #2809683 | Fairway Independent Mortgage Corporation, NMLS #2289 | The Wood Group of Fairway, 127 Lake Rd Ste 300, Belton, TX 76513 | Equal Housing Opportunity. This is not a commitment to lend. All loans are subject to credit approval and program guidelines, and approval, rates, and program availability are not guaranteed. This article is general information, not legal or tax advice; your contract, title company, and attorney control the details of your transaction. Examples are hypothetical. Not affiliated with or endorsed by TREC, TDI, the Texas Comptroller, or any government agency.