Texas Closing Costs: Who Pays for What
A plain-English map of the costs that show up at a Texas closing — for buyers and sellers — and which ones are customary versus negotiable in your contract.
The short version
Texas closing costs are split between buyer and seller. Buyers typically pay loan, appraisal, lender's title policy, and prepaid taxes/insurance; sellers customarily pay the owner's title policy, their closing-fee share, prorated property taxes, and commissions. Most items are negotiable in the contract — and always verify wire instructions by phone.
"Closing costs" is really a bundle of separate line items, split between buyer and seller. In Texas there are customary norms for who pays each — but almost everything is negotiable in the contract. Here's the map so nothing at the closing table surprises you.
What buyers typically pay
Buyer costs cluster around the loan and the move-in: loan origination and related lender fees, the appraisal, the lender's title policy, and prepaid items — homeowner's insurance, prepaid interest, and the initial escrow reserves for taxes and insurance. Buyers also usually pay to record the deed and any HOA transfer or setup fees. Your lender must give you a written Loan Estimate up front so these are itemized before you commit.
What sellers typically pay
In Texas it's customary for the seller to pay for the owner's title policy that insures the buyer's clear title, though this is negotiable. Sellers typically also cover their own escrow/closing fee share, any agreed-upon repairs or credits, and their share of prorated property taxes up to the closing date. Real estate commissions are paid from the seller's proceeds under most listing agreements — and, following recent industry changes, how buyer-side compensation is handled is itself negotiable and spelled out in the paperwork.
Costs that are usually split or negotiated
The title company's escrow/closing fee, the survey (a new one versus reusing an existing survey), and a home warranty are commonly negotiated between the parties. Property taxes are prorated — each side pays for the portion of the year they owned the home — which the title company calculates at closing.
Wire fraud — the one thing to guard
Before you send any money, verify wire instructions by calling the title company at a number you looked up yourself, never one from an email. Wire fraud in real estate is real and the money is hard to recover. A moment on the phone protects your entire down payment.
Want a straight estimate of your costs on a specific home or sale? A RealVisor agent will build the numbers with you — no obligation.
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