Who Pays What at a DFW Closing: Seller vs. Buyer

Who pays closing costs in a North Texas home sale?

In a Dallas–Fort Worth closing, both the buyer and the seller pay closing costs. However, no Texas law requires one side to cover all of them. Instead, local custom and the purchase contract drive the split. As a result, the allocation you see in DFW often looks very different from what a national article tells you to expect.

The DFW Custom: What Each Side Typically Pays

Here’s how the closing statement typically breaks down in Collin, Dallas, and Tarrant County transactions. “Typically” is doing real work in that sentence, because almost every line below is negotiable. In the end, the contract controls. That said, these are the defaults I see at the closing table in McKinney, Frisco, Allen, and across North Texas.

What sellers typically pay

• Owner’s title insurance policy. This is the biggest surprise for sellers who’ve bought homes in other states. In Texas, statewide custom places the owner’s title policy on the seller’s side of the closing statement. It protects the buyer’s ownership interest, and it is negotiable. Even so, in a normal DFW transaction, expect it on your ledger as the seller.
• Real estate commissions. Your listing agreement sets the listing-side commission. Any compensation a seller chooses to offer a buyer’s agent is optional and separately negotiable. In other words, it is not a fixed or automatic cost. Broker fees are fully negotiable, and no law sets them. So there is no standard, typical, or customary rate.
• Property tax proration. The seller pays their share of the current year’s property taxes through the closing date. This isn’t a negotiated line. Rather, it’s a formula-driven calculation based on county tax records and the closing date. Consequently, it shows up as a debit to the seller and a credit to the buyer on the closing disclosure.

Sellers: HOA fees, liens, and concessions

• HOA transfer fee / resale certificate fee. Master-planned communities define so much of North Texas. For example, think Stonebridge Ranch, Windsong Ranch, Fields, or Union Park. There, the HOA or management company charges a one-time transfer fee when ownership changes. By local custom, this lands on the seller’s side. Of course, it’s negotiable in the contract. Still, DFW agents routinely flag it upfront so sellers aren’t caught off guard.
• Lien release recording. If you have a mortgage, the seller typically pays to record the release of that lien after payoff.
• Home warranty (if offered). Sellers sometimes offer a home warranty as a marketing or negotiation tool. Again, it’s optional and fully negotiable.
• Any agreed buyer concessions. If you’ve negotiated a closing-cost credit to the buyer as part of the deal, then that debit appears on your side of the statement.

What buyers typically pay

• Lender’s title insurance policy. The lender requires it, so the buyer pays for it. This one rarely moves.
• Loan origination, underwriting, and processing fees. These are lender-required costs. Therefore, the buyer cannot shift them to the seller without an explicit concession in the contract.
• Appraisal fee. The lender requires the appraisal, and the buyer pays for it. In practice, it is non-negotiable.
• Home inspection costs. The buyer hires and pays the inspector before going under contract. This one never moves to the seller side.
• Recording fees for the deed of trust. In Collin County, the official recording fee schedule (effective January 1, 2024, and still in effect as of August 2026) sets $25.00 for the first page of a real property record. Each additional page then costs $4.00, with small per-name indexing fees beyond five names. Similarly, Dallas and Tarrant Counties operate under the same statewide no-transfer-tax structure with comparable per-page recording fees. To be safe, confirm current amounts at each county clerk’s office before closing.
• Prepaids and escrow setup. Homeowner’s insurance premiums, prepaid interest, and the initial escrow deposit for taxes and insurance are buyer costs, because they tie to the loan.
• Buyer’s portion of the escrow/settlement fee. More on this below.

What’s commonly split or negotiated

• Escrow/settlement fee. DFW transactions often split the title company’s closing fee 50/50. However, the contract can allocate it entirely to one side. At title companies like Chicago Title of McKinney, the standard Texas pattern applies unless the contract reallocates it.
• Survey. The buyer typically pays for a new survey. But if the seller has an existing survey the lender will accept, then the seller may provide it instead of paying for a new one. This is a common negotiation point in North Texas.
• HOA prorated dues. The title company prorates regular monthly or quarterly HOA assessments as of closing. After that, the buyer takes over going forward, while the seller covers their share through the closing date.

Customary allocation at a glance

The table below summarizes the customary allocation in DFW. Importantly, every line marked “negotiable” can be reassigned in the purchase contract.

Where DFW Differs from National Advice

Most national articles frame closing costs as primarily a buyer’s expense, with the seller only paying commissions. However, that framing doesn’t hold in North Texas.

The owner’s title policy

The biggest difference is the owner’s title policy. In states like California or New York, the buyer often pays for their own title coverage. In Texas, by contrast, the statewide custom places that cost on the seller. Because the Texas Department of Insurance sets title insurance premiums, the premium ties directly to the sale price. So on a higher-priced home in Stonebridge Ranch or Willow Bend, that’s a meaningful line item on the seller’s closing statement.

No transfer taxes

The second difference is transfer taxes, or rather the absence of them. Texas imposes no state or county real estate transfer tax, including in Dallas, Collin, and Tarrant Counties. Sellers who’ve previously sold in states like Colorado, Maryland, or California sometimes budget for a transfer tax that simply doesn’t exist here. In short, that’s one cost that genuinely disappears in a DFW transaction.

The seller’s disclosure

The third difference is how the seller’s disclosure affects the closing statement. North Texas sellers complete the Texas Real Estate Commission’s Seller’s Disclosure Notice early in the transaction. By itself, it isn’t a dollar line at closing. However, issues it surfaces often lead to repair negotiations, price adjustments, or last-minute credits to the buyer. Those then show up as debits on the seller’s closing statement. For instance, I’ve seen deals where a disclosure item that the seller could have fixed before listing turned into a several-thousand-dollar credit at the closing table instead. In other words, getting ahead of it matters.

The contract controls

Finally, no Texas law mandates who pays any particular closing cost (outside of formula-driven prorations). The National Association of REALTORS® and consumer guides describe “typical” splits. Those describe custom and common practice, not legal requirements. In a competitive DFW market, for example, buyers sometimes ask sellers to cover a portion of their closing costs as a concession. Likewise, sellers sometimes push back on the owner’s title policy. Ultimately, the purchase contract controls the allocation. That’s where experienced negotiation makes a real difference.

For a deeper look at how the seller’s side of the ledger breaks down across Collin, Dallas, and Tarrant Counties, see What DFW Sellers Pay at Closing: County Guide. Also, do you want to understand how commissions fit into the picture after the 2024 MLS settlement changes? Then Realtor Commissions in DFW After the MLS Settlement covers what’s changed and what hasn’t.

Your specific situation determines what your actual closing statement looks like. That includes your home’s price, your HOA, your existing mortgage, and what the buyer asks for in the contract. Therefore, that’s the conversation I have with every seller before we sign a listing agreement. If you want to walk through your numbers, reach out and we’ll put together a personalized net sheet.

Frequently Asked Questions

In a Dallas or Collin County home sale, which closing costs does the seller usually pay versus the buyer?

North Texas sellers customarily pay the owner’s title insurance policy, property tax prorations through the closing date, HOA transfer fees, and lien release recording costs. In addition, they pay any concessions agreed in the contract. Buyers, meanwhile, typically cover the lender’s title policy, appraisal, inspection, loan fees, recording of the deed of trust, and prepaids. The parties often split the escrow/settlement fee. Finally, every category except formula-driven prorations and lender-required fees is negotiable in the purchase contract.

Does the seller have to pay for the owner’s title policy in Texas, or can the buyer pay it in a DFW contract?

The seller paying the owner’s title policy is a statewide Texas custom, not a legal requirement. So in a DFW contract, the parties can agree to shift that cost to the buyer. In competitive markets or unusual circumstances, that does happen. Because the Texas Department of Insurance sets the premium rate, the cost is predictable once you know the sale price. Whether it stays on the seller’s side is a negotiation point. Either way, I’ll walk you through how to handle it in your specific transaction.

Who pays property taxes at closing in DFW, and how do the prorations work?

Texas homeowners pay property taxes in arrears. So at closing, the seller owes their share of the current year’s taxes through the closing date, and the buyer receives a corresponding credit. This is a formula-driven calculation based on the county tax records and the exact closing date. In other words, it’s not a negotiated concession. In Collin, Dallas, and Tarrant Counties, this proration appears as a standard line on the closing disclosure, and the title company handles it.

Are there transfer taxes on a home sale in Dallas–Fort Worth, or just recording fees?

Texas has no state or county real estate transfer tax, including in Dallas, Collin, and Tarrant Counties. So there is no transfer tax line on a DFW closing statement. Recording fees, however, do apply. In Collin County, the current fee schedule sets $25.00 for the first page of a recorded document and $4.00 for each additional page, per the Collin County Clerk’s official schedule effective January 1, 2024. Dallas and Tarrant Counties have similar per-page structures. As always, confirm current amounts at each county clerk’s office.

In a North Texas closing, who pays the HOA transfer fee and who pays the prorated HOA dues?

In DFW master-planned communities, the seller customarily pays the HOA transfer or resale certificate fee. It’s the one-time cost the HOA charges when ownership changes hands. Regular monthly or quarterly dues, by contrast, are prorated at closing. The seller covers them through the closing date, and then the buyer takes over going forward. The purchase contract addresses both the transfer fee allocation and the proration method. Notably, the transfer fee is negotiable.

Is it normal for the buyer to ask the seller to cover some of their closing costs in DFW?

Yes. Seller concessions toward a buyer’s closing costs are a common negotiating tool in North Texas. They are particularly common when a buyer has limited cash reserves or when the market has softened. The concession shows up as a credit to the buyer and a debit to the seller on the closing statement. However, lenders cap how much a seller can contribute based on loan type and loan-to-value ratio. Therefore, the buyer’s lender should confirm the allowable amount before it goes into the contract.

The Bottom Line

In a DFW closing, local custom and the purchase contract drive the split between seller and buyer costs. State law does not, and neither does a national article. Getting the allocation right, and knowing which lines are worth negotiating, is exactly the kind of work I do with clients before we ever get to the closing table.

Are you preparing to sell in McKinney, Frisco, Allen, or anywhere across North Texas? If you want to see what your closing statement is likely to look like, then let’s talk through a personalized net sheet together.

Equal Housing Opportunity. Jason Feller is a licensed Texas Real Estate Broker. Feller Realty is regulated by the Texas Real Estate Commission. This article is general information only and does not constitute legal, tax, or financial advice. Confirm your specific closing costs and obligations with your attorney, tax advisor, lender, or title/escrow officer. TREC Consumer Protection Notice | Information About Brokerage Services.