Texas

Closing costs in Texas: what buyers and sellers pay

Texas has no transfer tax. On a $400,000 Dallas home, the owner's title policy is $2,262 at TDI's 2026 rate. Line-by-line costs for buyers and sellers.

In short

No official source gives a “typical” Texas closing-cost percentage, so add it up line by line. Texas charges no transfer tax (Texas Constitution, Art. 8, § 29). The owner’s title policy on a $400,000 home costs $2,262 at Texas Department of Insurance rates effective March 1, 2026, and a simultaneous loan policy costs $100 (TDI Rate Rule R-5).

Why there is no single “typical” total

Some Texas closing costs are fixed by a government body: title insurance premiums (set by the Texas Department of Insurance, TDI) and recording fees (set by each county). Others are set by private companies and vary: lender charges, escrow fees, surveys, inspections and brokerage compensation. Prorated property taxes and insurance deposits depend on the house, the closing date and the loan.

So your total depends mostly on your loan, your contract and the date you close. The fixed pieces can be calculated exactly. The variable pieces appear on two federal forms: the Loan Estimate, which your lender must give you within three business days of your application, and the Closing Disclosure, which you must receive three business days before closing (Consumer Financial Protection Bureau). For a general walk-through of each line, see closing costs explained.

Line by line: what each cost is

Lender charges. Origination charges, appraisal, credit report, underwriting and loan document fees are set by the lender and the companies it hires. No Texas rate table applies. Compare them across lenders on the standard Loan Estimate form; the CFPB notes that every lender must use the same form.

Title insurance. TDI fixes the premium, and every title company must charge the same amount for the same policy (TDI title insurance FAQ). The owner’s policy is priced on the sales price. When the lender’s policy is issued at the same time, it costs a flat $100 as long as the loan does not exceed the owner’s policy amount (Rate Rule R-5). The basic premium also covers the title search, the title examination and closing the transaction (Rate Rule R-1). Details and the full formula are in our Texas title insurance guide.

Escrow fee. The title company charges a separate escrow (closing) fee. TDI does not set it: its FAQ says escrow fees differ between agents and that you can shop for them. The TREC resale contract splits it half and half between buyer and seller.

Recording fees. The county clerk records the deed and the deed of trust. In Dallas County, the clerk charges $25 for the first page and $4 for each additional page of a real property document (Dallas County Clerk, as of October 2026).

Transfer tax. None. Since January 1, 2016, the Texas Constitution has barred any new law that taxes a transaction conveying fee simple title to real property (Art. 8, § 29). Our transfer tax page covers the details.

Survey. The TREC contract lets the parties use the seller’s existing survey with a TDI affidavit (form T-47 or T-47.1), or order a new one, and says who pays. Survey prices are not regulated; see what a land survey costs.

Attorney. TDI’s FAQ notes that you may have an attorney attend the closing with you. That fee is separate and set by the attorney. See when to hire a Texas real estate attorney.

Prepaids and prorations. Property taxes for the current year are prorated through the closing date (TREC contract, paragraph 13). If your lender requires reserve deposits for taxes and insurance, the TREC contract lists them among the buyer’s expenses; they fund your escrow account. How much depends on your tax bill; see Texas property tax.

Who pays what in Texas

The Texas Real Estate Commission (TREC) promulgates the One to Four Family Residential Contract (Resale), which TREC calls its most frequently used contract form. It covers resales of single-family homes up to four-plexes, not condominiums, new homes sold by a builder or farm and ranch property. The current version, TREC No. 20-19, took effect on July 1, 2026. Its paragraph 12 assigns the expenses below unless the parties agree otherwise.

CostWho pays under TREC No. 20-19
Owner’s title policyCheckbox in paragraph 6A: seller or buyer
Loan title policy and lender-required endorsementsBuyer
Escrow feeHalf buyer, half seller
Appraisal, loan application, origination, credit report, loan documentsBuyer
Recording fees (deed, deed of trust)Buyer
Releases of existing liens, including their recording feesSeller
Deed preparation, tax statements or certificatesSeller
Prepaid taxes and insurance, mortgage insurance, VA funding fee, FHA premiumBuyer
Seller contribution to buyer’s expensesSeller, up to the amount written in paragraph 12A(1)(b)
Brokerage compensationEach party pays its own broker under its written agreement (paragraph 12B)

TDI also says that buyer and seller may negotiate who pays the title premium. The contract leaves that choice to a checkbox; it does not set a default.

On brokerage compensation, the contract states that it “is not set by law and is fully negotiable.” See real estate commission.

What it costs: a worked example in Dallas

This is an example, not a quote. Assume a $400,000 home in Dallas County, a $320,000 loan, and a closing in October 2026. Only the lines fixed by TDI, the county or the Constitution are calculated.

LineRule usedAmount
Owner’s title policyTDI chart from March 1, 2026: ($400,000 − $100,000) × 0.00494 + $780$2,262
Loan title policy, issued at the same timeRate Rule R-5$100, plus lender-required endorsements
Optional amendment of the area and boundary exception (owner’s policy)Rate Rule R-16: 5% of the basic premium on residential property$113
Recording a 5-page deed (page count assumed)Dallas County: $25 + 4 × $4$41
Transfer taxTexas Constitution, Art. 8, § 29$0
Lender charges, escrow fee, survey, inspectionSet by each providerSee your Loan Estimate and title company quote
Tax proration and escrow depositsDepends on the tax bill and closing dateSee your Closing Disclosure

Read with the TREC defaults, the buyer pays the $100 loan policy, the recording fees and the lender’s charges. The $2,262 owner’s policy goes to whoever is checked in paragraph 6A. The $113 amendment is optional and goes to whoever is named in paragraph 6A(8). Each side pays half the escrow fee. The seller also pays to release the existing mortgage and to prepare the deed. At a different price, rerun the formula: a $300,000 home gives an owner’s premium of $1,768.

Frequently asked questions

Does Texas have a transfer tax on home sales?

No. Article 8, Section 29 of the Texas Constitution, added in November 2015, bars any law enacted after January 1, 2016, from imposing a transfer tax on a transaction that conveys fee simple title to real property. You still pay county recording fees.

Can I shop for a cheaper title policy in Texas?

Not on the premium. TDI sets it, and every title company must charge the same premium for the same policy. You can compare escrow fees and the other charges the title company adds, which TDI says differ between agents.

Who pays for the owner’s title policy in Texas?

The TREC resale contract has a checkbox in paragraph 6A: the policy is at the seller’s or the buyer’s expense, as the parties agree. TDI states that buyer and seller may negotiate who pays.

How much are recording fees in Dallas County?

As of October 2026, the Dallas County Clerk charges $25 for the first page and $4 for each additional page of a real property document. The total depends on how many pages your deed and deed of trust have.

When will I know my exact closing costs?

Your lender must send a Loan Estimate within three business days of your application. You must receive the Closing Disclosure, with the final figures, three business days before closing (CFPB).

Compare with the other states: Closing costs by state.

More Texas guides

Sources

Texas · All states · Federal guides