Trying to figure out who pays which closing costs when you sell or buy in Texas? You are not alone. The answer depends on state customs, your contract, and a few Austin-area specifics that can shift your bottom line. In this guide, you will learn the typical buyer and seller costs in Texas, what is common in West University in Travis County, and how small negotiation choices can move your net proceeds. Let’s dive in.
Texas closing costs at a glance
Closing costs in Texas follow long-standing customs, and most items are negotiable in your purchase contract. Two big Texas facts shape the numbers:
- No state transfer tax. Texas does not charge a state real estate transfer tax, so there is no automatic transfer-tax line at closing.
- Title insurance convention. It is common for the seller to pay for the owner’s title insurance policy in Texas, while the buyer pays for the lender’s policy if there is a loan. Title premiums are regulated statewide by the Texas Department of Insurance.
Most closings in Travis County are handled by title companies that prepare your settlement statement, collect payoffs, and record the deed. For financed buyers, federal rules require the Closing Disclosure to be delivered at least three business days before consummation, as explained by the Consumer Financial Protection Bureau.
Who pays what in West University
Seller-typical costs in Texas
- Broker commissions. Often the largest seller expense. The total commission structure is agreed upon in your listing agreement and reflected on the closing statement.
- Owner’s title insurance policy. Customarily paid by the seller in Texas and based on the purchase price under state-regulated premium rates.
- Mortgage payoff and release fees. If you have a loan, the title company will pay it off from your proceeds and record the release. Seller covers any related recording charges.
- Prorated property taxes. Sellers typically pay property taxes up to the closing date. Travis Central Appraisal District valuations and local tax rates drive the math, so prorations are common at closing through Travis Central Appraisal District.
- HOA obligations. Any regular dues or special assessments owed through closing are usually a seller responsibility unless negotiated otherwise.
- Deed and document prep fees. Modest charges for seller-side documents and any courier or reconveyance fees.
- Agreed concessions. Any credits to the buyer for closing costs or repairs reduce your net proceeds.
Buyer-typical costs
- Loan costs. Origination, underwriting, processing, and any points are buyer-paid unless a seller credit covers them.
- Appraisal and inspections. The buyer pays for lender-required appraisal and any home or specialty inspections.
- Lender’s title insurance policy. Buyer typically pays this if there is a mortgage.
- Prepaids and escrows. Buyers often fund initial tax and insurance escrows at closing.
- Recording fees for the deed of trust. Buyers usually pay to record their mortgage.
- Survey, if needed. A lender or title requirement may trigger a new survey if a recent acceptable one is unavailable. Payment is negotiable.
- Share of closing fees. Some escrow or title company fees are split or assigned by local custom and contract.
Costs you can negotiate
- Title and escrow fees. Often split or assigned by contract. Ask for quotes from more than one title company.
- HOA resale and transfer fees. Sellers often order and pay for the resale certificate, but transfer fees are negotiable.
- Survey. If the seller has a recent acceptable survey, it can save time and money. Otherwise, decide who pays for a new one in the contract.
- Recording or document prep allocations. These can be adjusted by agreement.
Title insurance in Texas
Title insurance premiums are one-time charges based on the purchase price and regulated statewide by the Texas Department of Insurance. In most Texas transactions, the seller pays for the owner’s policy, which protects the buyer’s ownership. The buyer pays for a lender’s policy if financing is involved.
What to do next:
- Ask your title company for an itemized quote showing the owner’s premium, lender’s policy, and endorsements. This helps you see how the premium affects your net proceeds.
- Confirm whether any endorsements require an updated survey, which can change cost allocations.
HOA resale and transfer fees
Many West University homes, townhomes, and condos sit in associations. Typical HOA items include the resale certificate, transfer or processing fees, and prorated dues. Local practice varies, but sellers often pay for the resale certificate because buyers and lenders need it to proceed.
Action steps for a smooth sale:
- Contact the HOA or management company early to confirm cost, payment method, and turnaround time for the resale certificate.
- Clarify who will pay the transfer fee in your contract. This is negotiable and can be used strategically during offer negotiations.
- Ask your title company how HOA charges will appear on your closing statement.
Escrow, closing, and recording in Travis County
Title companies typically handle escrow and closing in Austin and Travis County. They prepare your settlement statement, collect payoffs, and record the deed with the county clerk. Escrow or closing fees can be split or assigned by contract, so get written estimates before you evaluate offers.
- Buyers using a loan must receive the Closing Disclosure at least three business days before closing. See the CFPB guide to the Closing Disclosure.
- Deed and mortgage documents are recorded with the county. For current recording procedures and fee references, review the Travis County Clerk’s recording information.
Survey questions to answer early
Surveys matter because lenders and title companies may require a current one for coverage and endorsements. If you have a recent acceptable survey and a T-47 affidavit, you may be able to avoid ordering a new one. If not, expect to negotiate who pays and when it will be ordered.
Quick check:
- Is a current survey available? If not, who will pay for a new survey?
- Will the title company or lender require updates or specific endorsements tied to survey certainty?
Property taxes and prorations
Property taxes in Texas are a key line item at closing. Taxes are typically prorated so the seller pays their share up to the closing date and the buyer takes over after recording. Travis County valuations and billing schedules come through the Travis Central Appraisal District. If taxes are unpaid or if there are special assessments, the title company will address them on the closing statement and adjust your proceeds.
Tips:
- Ask your title company for a current tax certificate and a draft proration.
- Review prorations closely if closing near year-end or if a valuation protest is pending.
How offers change your net in West University
When you compare offers, focus on net proceeds, not just price. Here are simplified examples that show how different terms can change your bottom line. Use these as frameworks and plug in your numbers.
Example A — No seller concessions:
- Sale price = X
- Commission = agreed percentage of X
- Owner’s title premium = regulated amount based on X
- Prorated taxes and HOA dues = amounts through closing date
- Net to seller = X minus commission, title premium, mortgage payoff, prorations, and modest closing fees
Example B — Seller credits buyer 5,000 for closing costs:
- Same as Example A, then subtract a 5,000 credit
- Net to seller = Example A net minus 5,000
Example C — Seller pays more buyer costs to win a strong buyer:
- Convert buyer closing-cost support into a seller credit
- Compare net with and without the credit. If price increases but the credit rises too, confirm your net still meets your target after commission, title premium, and taxes
Exact results depend on real premiums, current recording fees, and your payoff. For precision, request a custom net sheet that reflects your address, contract terms, and chosen title company.
Quick checklist for West University sellers
- Ask your agent for a custom, itemized seller net sheet for your address and target price.
- Contact a title company for fee estimates, including the owner’s title premium and escrow charges.
- Order the HOA resale certificate early and confirm cost and delivery timeline.
- Retrieve your mortgage payoff statement so estimates are current.
- Confirm whether a current survey exists and whether a new one is required.
- Check for any unpaid assessments, liens, or tax issues that will be cleared at closing.
- Review your settlement statement and the buyer’s Closing Disclosure timing if the buyer is financed.
What the contract controls
Your Texas purchase contract outlines who pays what. Many items are negotiable and should be clearly assigned when you accept an offer. For forms and guidance, see the Texas Real Estate Commission’s contract resources. If you want certain fees covered by the other party, make sure the agreement states that allocation in writing.
Get a custom seller net sheet
Want a custom seller net sheet for your West University home that reflects current title premiums, recording fees, payoffs, and any negotiated credits? Reach out and we will build an itemized estimate so you can compare offers with confidence. If you are planning to sell in Texas and want to keep more of your equity with a clear, full-service plan, connect with Marian Motamedi today.
FAQs
Who typically pays closing costs in West University, Travis County?
- In Texas, sellers commonly pay commissions, the owner’s title policy, prorated taxes through closing, and their mortgage payoff. Buyers typically pay loan costs, appraisal, inspections, their lender’s title policy, and prepaids. Many items are negotiable.
Does Texas charge a real estate transfer tax?
- No. Texas does not impose a state real estate transfer tax, so there is no transfer-tax line item at closing.
Who pays for the owner’s title policy in Texas?
- It is customary for the seller to pay for the owner’s title policy, with premiums regulated by the Texas Department of Insurance. This is negotiable in the contract.
How are HOA resale and transfer fees handled in West University?
- Sellers often pay for the HOA resale certificate, while the transfer or administrative fee is negotiable. Confirm costs and timing with your HOA or management company early.
Who pays for the survey in a Travis County sale?
- If a recent acceptable survey exists, it may be used. Otherwise, a new survey is typically a buyer expense unless the parties negotiate a different allocation.
How much are buyer and seller closing costs in Texas?
- Buyer costs, excluding the down payment, often range around 2–5 percent of the price. Seller costs excluding commission can run roughly 1–3 percent, but commissions are usually the largest single seller expense. Actual amounts vary.
When must a financed buyer receive the Closing Disclosure?
- The buyer must receive the Closing Disclosure at least three business days before closing, per the Consumer Financial Protection Bureau.
