Who pays closing costs in Texas?
In Texas, there is no law that assigns most closing costs to the buyer or the seller. Who pays is negotiated in the sales contract, primarily Paragraph 12 of the TREC One to Four Family Residential Contract (Resale). In the San Antonio and Bexar County market, custom guides the typical split — for example, sellers commonly pay for the owner's title policy while buyers commonly pay loan and prepaid costs — but every one of these items is negotiable and can be shifted by agreement. Use the buyer-versus-seller table below to see customary responsibilities, then confirm your exact numbers on the lender's Loan Estimate and Closing Disclosure.
| Closing cost item | Typically paid by (San Antonio custom) | Negotiable? |
|---|---|---|
| Loan origination, application, underwriting | Buyer | Yes (can be offset by seller concession) |
| Appraisal and credit report | Buyer | Yes |
| Prepaids & escrow reserves (homeowner's insurance, property tax reserves, prepaid interest) | Buyer | Yes |
| Owner's title policy | Seller (common local custom) | Yes |
| Lender's title policy & endorsements | Buyer | Yes |
| Survey | Negotiated (buyer or seller) | Yes |
| Escrow / closing fee | Often split between parties | Yes |
| Recording fees (deed, deed of trust) | Buyer (set by Bexar County Clerk) | Some fees fixed by county; who pays is negotiable |
| HOA transfer / resale certificate | Negotiated; seller often provides resale certificate | Yes |
| Real estate brokerage compensation | Negotiable per listing and buyer representation agreements | Yes |
- Primary keyword: who pays closing costs in Texas
- Local focus: San Antonio closing costs, buyer vs seller, 2026
- Key point: customs guide the typical split; the contract controls the actual obligation
Resumen en español: ¿quién paga los gastos de cierre en Texas?
En Texas no existe una ley que obligue al comprador o al vendedor a pagar la mayoría de los gastos de cierre. Se negocia en el contrato, principalmente en el Párrafo 12 del contrato residencial de TREC. En San Antonio, por costumbre local, el vendedor suele pagar la póliza de título del propietario y el comprador suele pagar los gastos del préstamo y los depósitos, pero todo es negociable. Bel explica cada gasto en inglés o español antes de que haga una oferta o ponga su casa a la venta.
Is anyone required to pay closing costs in Texas?
No single party is required by Texas law to pay most closing costs. The obligation comes from the sales contract itself. In a typical San Antonio resale, that contract is the TREC One to Four Family Residential Contract (Resale), and Paragraph 12 ("Settlement and Other Expenses") is where the parties spell out which costs each side pays and how much, if any, the seller will contribute toward the buyer's expenses.
This is the important distinction: a local custom describes what usually happens in San Antonio, but a contract term is what actually binds the parties. A buyer or seller is only obligated to pay an item because the signed contract says so — not because "that's how it's always done." Because these items are negotiable, they can move with the rest of the deal (price, repairs, timeline).
What buyers typically pay in San Antonio
Buyers usually carry the costs tied to their loan and to setting up ownership. Your lender is required to give you a Loan Estimate shortly after you apply, itemizing these charges, and a final Closing Disclosure at least three business days before closing.
- Loan costs: origination, application, underwriting, appraisal, and credit report fees.
- Prepaids and escrow reserves: homeowner's insurance, property tax reserves, and prepaid interest. San Antonio's property tax picture makes the tax reserve worth planning for — see Bel's San Antonio property taxes guide.
- Lender's title policy and endorsements required by the lender.
- Recording fees for the deed and deed of trust, set by the Bexar County Clerk.
First-time and cash-to-close-sensitive buyers should read the first-time home buyer guide and the down payment assistance guide, since some programs can help with closing costs as well as down payment.
What sellers typically pay in San Antonio
Sellers usually carry costs tied to transferring clear title and to their agreed brokerage compensation. By common San Antonio and Bexar County custom, the seller often pays for the owner's title policy, which protects the buyer's ownership — but this is a custom, and the contract can assign it differently. Title insurance premium rates in Texas are regulated by the Texas Department of Insurance, so the rate itself does not change from one title company to another.
Real estate brokerage compensation is negotiable and is set in the listing agreement and any buyer representation agreement — it is not fixed by law or by a standard rate. Sellers preparing to list should also review Bel's San Antonio home-selling tips and, for as-is situations, the selling as-is guide.
How seller concessions work
A seller concession is a negotiated credit the seller agrees to pay toward the buyer's closing costs or prepaids. It is written into the contract and is entirely negotiable — nothing requires a seller to offer one. Two practical limits matter: first, the seller has to agree to it as part of the deal; second, the buyer's lender and loan program cap how much of a concession can be applied. Those caps vary by loan type and down payment, so a buyer should confirm the exact allowable amount with their lender before writing the offer, and a seller should weigh a concession against a lower price.
Title, survey, HOA, and recording items
Beyond loan and title policy costs, several San Antonio-specific items are negotiated in the contract:
- Survey: the parties decide whether the buyer or seller provides or pays for a new survey, or whether an existing survey plus an affidavit will work.
- Lender's vs. owner's title policy: the owner's policy protects the buyer's ownership; the lender's policy protects the loan. They are separate line items and can be assigned to different parties.
- HOA transfer and resale certificate: in an HOA neighborhood, the resale certificate and transfer fees are negotiated. Sellers often provide the resale certificate.
- Recording fees: the Bexar County Clerk sets the fees to record the deed and deed of trust; who pays them is negotiable even though the fee amounts are set by the county.
Paragraph 12, explained plainly
Paragraph 12 of the TREC resale contract is the section where closing costs live. It lists expenses each party will pay at settlement and includes a place to state a dollar amount the seller will contribute toward the buyer's expenses. It also addresses how certain lender-required repairs or excess fees are handled. Because Paragraph 12 is filled in during negotiation, it is the single best place for a buyer or seller to see, in writing, exactly what they are agreeing to pay — which is why Bel walks clients through it line by line, in English or Spanish, before signing.
Pre-offer and pre-listing checklists
Before you write an offer (buyers):
- Ask your lender for a Loan Estimate and a cash-to-close figure for your target price and loan type.
- Confirm the maximum seller concession your loan program allows.
- Budget for prepaids and property tax reserves, not just the down payment.
- Decide your position on survey, title, and HOA items before you negotiate Paragraph 12.
Before you list (sellers):
- Estimate the owner's title policy and any customary seller-paid items for your price point.
- Confirm your brokerage compensation terms in the listing agreement.
- Decide in advance whether you are open to a seller concession and how it trades against price.
- Gather HOA resale-certificate details early if your home is in an association.
Primary sources
- TREC — One to Four Family Residential Contract (Resale), including Paragraph 12: trec.texas.gov
- CFPB — Loan Estimate: consumerfinance.gov
- CFPB — Closing Disclosure: consumerfinance.gov
- Texas Department of Insurance — Title insurance: tdi.texas.gov
- Bexar County Clerk — recording (deed and deed of trust): bexar.org
How to use this guide
The most useful next step is to turn "who pays closing costs" into a transaction-specific worksheet instead of a rule of thumb. A San Antonio buyer should compare their cash to close, seller-concession limit, prepaids, and loan costs; a seller should compare the owner's title policy, brokerage compensation, and any concession against their net proceeds. Because these items are negotiable and governed by Paragraph 12, the right numbers come from your specific contract, lender documents, and title company — not from a generic percentage.
What to verify before relying on any figure
This page explains customs and contract structure; it does not promise a specific dollar amount, guarantee approval, or set brokerage fees. Verify your actual costs on the lender's Loan Estimate and Closing Disclosure, confirm title costs with your title company, confirm recording fees with the Bexar County Clerk, and confirm concession limits with your lender. Customs describe what is common in San Antonio; your signed contract is what obligates each party.
Equal Housing Opportunity. Information is provided for general real estate guidance and is not legal, tax, or lending advice. Closing costs are negotiable and vary by transaction; confirm your figures with your lender, title company, and the county before relying on them.