Thinking of selling in Dallas–Fort Worth, Denton, Collin, Dallas or Tarrant County? Here’s a clear, data-backed breakdown of what North Texas home sellers typically pay at closing, why those costs exist, and how to estimate them for your price point.
TL;DR: Typical Seller Costs in Texas
- Owner’s Title Policy (usually seller-paid in North Texas; rates set by the state)
- Escrow/Settlement fee (title company closing fee)
- Recording & payoff-related fees (e.g., release of lien)
- HOA/POA fees (resale certificate is capped by law; transfer/capitalization fees vary)
- Survey (if needed) and T-47/T-47.1 form
- Prorated property taxes (Texas taxes are paid in arrears)
- Real estate broker compensation (negotiable, structure has changed)
- Miscellaneous/title endorsements, courier/e-file, tax certificates
- Optional: Home warranty, repairs, concessions/credits
Texas does not have a state real-estate transfer tax. That’s prohibited by the Texas Constitution. (Williamson County, TX)
Texas & North Texas Rules That Shape Your Closing Costs
1) Title insurance premiums are regulated statewide
In Texas, title insurance rates are uniform and set by the Texas Department of Insurance (TDI). The seller customarily pays the Owner’s Title Policy in North Texas, though this is negotiable.
Example: At a $400,000 sales price, the basic owner’s premium is $2,413 according to the statewide rate chart. (Republic Title)
2) No transfer tax
Texas prohibits a state transfer tax on the sale or transfer of real property. Expect recording fees instead (see Denton County example below). (Denton County)
3) HOA resale certificates are fee-capped by law
If your property is in an HOA/POA, the resale certificate fee is capped at $375; an update is capped at $75 (Texas Property Code §207.003). Transfer/capitalization fees are not capped and vary by association. (Texas Statutes)
4) Property taxes are prorated at closing
Texas property taxes are paid in arrears. The contract requires proration through the closing date (TREC One-to-Four Family Contract, Paragraph 13), so sellers typically credit buyers for the year-to-date share at closing. (TREC)
5) Buyer-broker compensation is negotiable and rule changes matter
Compensation is fully negotiable. Following NAR’s 2024 settlement, listing brokers no longer publish offers of buyer-broker compensation in the MLS; buyers sign written representation agreements. Your strategy for any buyer-side compensation or concessions should be discussed with your agent.
Every Potential Seller Closing Cost (Explained)
| Cost | Who Typically Pays (DFW Custom) | Notes / How It’s Calculated |
|---|---|---|
| Owner’s Title Policy | Usually Seller (negotiable) | State-regulated premium based on price; e.g., $2,413 at $400,000. Endorsements may add small % of the premium. |
| Escrow/Settlement Fee | Split or negotiated | Title company fee for closing handling; amounts vary by company (example calculators list a few hundred dollars). |
| Recording Fees (County Clerk) | Seller pays any releases; buyer typically pays deed | Denton County: $25 first page + required $4 recording info page, + $4/additional page. Other counties are similar. |
| Payoff/Release of Lien Recording | Seller | Lender payoff plus recording the Release of Lien (document fee varies by county; calculator example shows ~$20–$36+/doc). |
| Tax Certificates | Usually Seller | Title orders tax certs (example estimate ~$38.50 per taxing authority). |
| HOA Resale Certificate | Negotiable (often Buyer, but varies by contract) | Capped at $375 by statute; update capped at $75. HOA transfer/capitalization fees vary (not capped). |
| Survey | Negotiable | If no acceptable existing survey + T-47/T-47.1, a new survey may be needed. Using an existing survey can save ~$500–$700. |
| T-47 / T-47.1 Form | Seller (if using existing survey) | TDI-promulgated; T-47.1 (effective 2025) can be used in lieu of notarized T-47 per TREC updates. |
| Title Endorsements (e.g., T-19.1) | Negotiable | Common owner endorsement (Restrictions/Encroachments/Minerals). 5% of basic premium when purchased with survey coverage; 10% if alone (min $50). |
| Courier/Wire/E-file | Varies | Typical fixed admin fees by the title company (examples: overnight/courier and e-file charges). |
| Home Warranty (Optional) | Negotiable | Often used as a buyer incentive. Typical $400–$1,000/yr range, depending on plan and provider. |
| Repairs/Concessions | Seller (if negotiated) | You may agree to repairs, price reductions, or seller credits toward buyer costs—strategy depends on market and loan rules. |
| Broker Compensation | Seller, Buyer, or both—all negotiable | Discuss with your listing broker; MLS rule changes affect how/where compensation is offered. |
Denton County Example: What Might My Seller Costs Look Like?
Scenario: $400,000 sale in Denton County with an HOA and an existing survey acceptable to title.
- Owner’s Title Policy: $2,413 (set by TDI rate table). (Republic Title)
- T-19.1 Endorsement (paired with survey coverage): approx. 5% of basic premium → about $121 (minimum $50).
- Escrow/Settlement Fee: Title-company specific (often a few hundred dollars).
- HOA Resale Certificate (if seller agrees to pay): Capped at $375; update capped at $75. (Texas Statutes)
- Recording to Release Lien(s): Per county schedule (e.g., Denton $25 first page + $4 recording info page + $4/additional page). (Denton County)
- Tax Certificates: Example estimate ~$38.50.
- Prorated Property Taxes: Seller credits buyer for Jan 1 through closing date (per TREC Paragraph 13). Amount depends on tax rate/closing date.
- Optional Home Warranty: ~$400–$1,000 if offered.
Important: The owner’s policy and endorsements are state-regulated; escrow/admin/HOA/recording items vary by company and association. Always base your estimate on a written title fee quote and your signed contract.
County Recording Fees: A North Texas Snapshot
- Denton County: $25 (first page) + $4 recording information page + $4 each additional page. Similar structures appear across DFW counties with different totals. (Denton County)
HOA Fees: What’s Fixed vs. What’s Flexible
- Fixed/capped by law:
- Resale certificate max $375; update max $75. (Texas Statutes)
- Variable (check your HOA):
- Transfer/processing fees, capital contributions, move-in fees—these are set by the association’s governing documents and aren’t capped by state law. (Amounts are disclosed in the HOA resale package your buyer will receive.)
Surveys & the T-47/T-47.1
- If you have a prior survey and nothing changed, you may provide the survey with a T-47 (affidavit) or T-47.1 (declaration; effective 2025). If the survey isn’t acceptable—or you can’t sign the T-47/T-47.1—you’ll likely need a new survey. Using an existing survey can save about $500–$700 on a typical residential lot.
How Much Should I Budget?
There isn’t a one-size-fits-all number, but in North Texas a seller will often see:
- State-regulated title premium (see table example above)
- A few hundred dollars in escrow/admin/recording/tax-certificate fees (varies by title company and county)
- HOA resale up to $375 (plus any non-capped transfer/capitalization fees if you agree to pay them)
- Prorated property taxes through the closing date
- Optional home warranty $400–$1,000
- Repairs/concessions only if negotiated
Because so many items are negotiated (and because Texas has no transfer tax), total “non-commission” seller closing costs in North Texas commonly land in the low 1–2% range of the price for many standard resale transactions, plus any agreed repairs/concessions. Always confirm your net sheet with your title company and agent.
Sources & Further Reading
- Title insurance rates & rules (Texas Department of Insurance): Basic premium rate table + manual & endorsements.
- DFW customs & tools (Republic Title / Old Republic Title): Who typically pays what; seller cost explainer; calculators & stats.
- Denton County recording fee schedule: Official county page. (Denton County)
- HOA Resale Certificate cap: Texas Property Code §207.003; SB 1588. (Texas Statutes)
- TREC contract prorations (Paragraph 13): 1–4 Family (Resale) form (effective 2025) and title blogs clarifying proration mechanics. (TREC)
- Home warranty (optional): Typical costs from NerdWallet/Redfin/Forbes. (NerdWallet)(Redfin)(Forbes)
- No Texas transfer tax: Texas Constitution Article VIII, §29; analysis. (Williamson County, TX)
- Sample admin fees (title calculator example): Settlement/escrow, courier/e-file, tax certificate. (superiorabstract.com)
Pro Tip: Get a Personalized Net Sheet Early
Ask your agent and title company for a written seller net sheet based on your price, HOA, payoff(s), and closing date. This will incorporate the regulated title premium, actual HOA fees, real tax prorations, and the right county recording fees—so you’re never surprised at the closing table.
Ready to Sell in North Texas?
This is why it’s important to have an experienced real estate professional on your side—someone who understands Texas rules, local customs, and how to negotiate your net. If you’d like a tailored seller net sheet for your address (Denton/Collin/Tarrant/Dallas County), I’m happy to help.