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Who generally pays for what in real estate transactions?

When it comes to real estate transactions in Texas, generally the costs are split as shown below.

The Buyer:

  • All new loan charges

  • Prorated interest on new loan

  • Escrow fee (one half)

  • Title insurance premium for Lender’s policy

  • Homeowner’s insurance premium

  • Inspection fees

  • Accommodation signing fees for mail-out closings, if applicable

  • Tax proration (from date of acquisition)

  • Recording charges for all documents in Buyer’s name

The Seller:

  • Real estate commission

  • Title Insurance premium for Owner’s policy

  • Escrow fee (one half)

  • Payoff of all loans in Seller’s name

  • Interest accrued to lender being paid off

  • Home warranty (or according to the contract)

  • Any judgments, tax liens, etc., in Seller’s name

  • Any and all taxes due

  • Tax proration

  • Any applicable homeowner’s association dues

  • Recording charges to clear all documents of record in Seller’s name

  • Any bonds or assessment

  • Accommodation signing fees for mail-out closings, if applicable

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