Closing costs are the upfront costs to get a loan and transfer ownership of a home. In Texas, the TREC resale contract (Paragraph 12) sets a starting point for who pays what. Much of it can be negotiated.
What the seller usually pays
Under the contract’s default list, the seller pays:
- Releases of existing liens, including prepayment penalties and recording fees
- Tax statements or certificates
- Preparation of the deed
- Half of the escrow fee
- Any amount the seller agrees to put toward the buyer’s expenses
What the buyer usually pays
The buyer pays loan-related costs. These include appraisal and loan application fees, origination charges, credit reports, the lender’s title policy, recording fees, half of the escrow fee, and prepaid items like insurance premiums and reserves for property taxes. The exact list is in Paragraph 12A(2).
Title insurance
The contract has a box for whether the seller or the buyer pays for the owner’s title policy, so it’s negotiable. According to the Texas Department of Insurance, title insurance rates in Texas are set, so every company charges the same rate. An owner’s policy is based on the sale price, and a loan policy is based on the loan amount. You can choose any title company.
Brokerage compensation
The TREC contract states that brokerage compensation is not set by law and is fully negotiable. Each party pays their own broker under their separate written agreements, and the contract has a place for any agreed contribution from the other party.
Prorations
Current-year property taxes, HOA dues, and similar items are prorated through the closing date. If the final tax bill is different, the parties adjust later.
Check your loan forms
If you’re getting a mortgage, your Loan Estimate shows estimated closing costs within three business days of applying. Your Closing Disclosure arrives three business days before closing. Compare the two and ask about anything that changed.
No percentages here on purpose. Your actual costs depend on your price, loan, and contract. Your lender’s Loan Estimate and the title company’s figures are the best sources for your numbers.
Have questions about buying or selling in DFW? Send me a message or call or text me at 602-214-3584. I’m happy to walk you through it.
Sources
- TREC, One to Four Family Residential Contract (Resale), TREC No. 20-19, Paragraphs 6, 12 and 13: trec.texas.gov
- Texas Department of Insurance, What is title insurance?: tdi.texas.gov
- CFPB, Loan Estimate explainer: consumerfinance.gov
- CFPB, Closing Disclosure explainer: consumerfinance.gov
- CFPB, What is a Loan Estimate?: consumerfinance.gov
Checked November 3, 2026.
General information only, not legal advice. Contract terms and local rules vary. Talk to a real estate attorney for legal questions about your situation.