What Sellers Pay in Texas

✅ Real Estate Commission

While there's no standard, fixed rate of commission, sellers typically pay 5-6% total.
This is typcially split between listing agent and buyer's agent. This is typically the largest closing cost for sellers and is negotiable.

✅ Title Insurance Policy
In Texas, sellers customarily pay for the owner's title insurance policy protecting the buyer. Cost varies based on sale price (typically $1,000-$3,000).

✅ Pro-Rated Property Taxes
You pay property taxes through your closing date. Buyer pays from closing date forward. This is calculated on your closing statement.

✅ HOA Transfer Fees (if applicable)
Many HOAs charge transfer or document fees (typically $100-500) when ownership changes.

✅ Outstanding Liens or Judgments
Any liens against the property (mortgage payoff, home equity loans, contractor liens, judgment liens) must be paid at closing from your proceeds.

✅ Negotiated Repairs or Concessions
Any credits or repair allowances you agreed to during negotiations are deducted from your proceeds.

✅ Recording Fees and Misc. Charges
Small fees for recording documents and administrative costs (typically under $100 total).

Your Net Proceeds Estimate

Before closing, you'll receive a preliminary Closing Disclosure showing:

✅ Sale price
✅ All deductions (commission, title policy, payoffs, repairs, etc.)
✅ Pro-rated taxes and HOA dues
✅ Your estimated net proceeds

Review this carefully with your agent to ensure accuracy. Your actual net proceeds check or wire is based on this final accounting.

Deed
Transfers legal ownership from you to the buyer. This is the most important document—once signed and recorded, the property is no longer yours.

Closing Disclosure (Seller's Side)
Itemizes all costs, proceeds, and financial transactions. Review carefully before signing.

Affidavits
Various affidavits confirming no undisclosed liens, no possession disputes, property boundaries accurate, etc.

FIRPTA Affidavit
Confirms you're a U.S. citizen/resident for IRS purposes (Foreign Investment in Real Property Tax Act compliance).

HOA Documents (if applicable)
Transfer of HOA responsibilities and confirmation of dues paid current.

Lien Releases
If paying off mortgage or other liens at closing, you'll sign authorization for payoff.

How Long Does Closing Take?

Seller closings typically take 20-25 minutes. You'll review documents, sign approximately 10-20 pages, ask any questions, and complete the process.

The title company then coordinates with the buyer's closing (often scheduled later the same day or next morning) to complete the transaction.

Immediate Post-Closing Tasks

1. Cancel or Transfer Utilities
Cancel service effective closing date or transfer to your new address. Keep utilities on through closing day for the final walkthrough.

2. Cancel Homeowners Insurance
Contact your insurance provider to cancel your policy effective closing date. You may receive a prorated refund if you've paid ahead.

3. Forward Your Mail
File change of address with USPS and update your address with banks, credit cards, subscriptions, etc.

4. Save Closing Documents
Keep copies of all closing documents, especially the Settlement Statement/Closing Disclosure, for tax purposes.

5. Notify HOA (if applicable)
Confirm HOA has been notified of ownership transfer and your forwarding address.

Tax Implications

✅ Capital Gains Exclusion:
If you've lived in the home as your primary residence for at least 2 of the last 5 years, you should be able to exclude up to $250,000 in capital gains (single) or $500,000 (married filing jointly) from taxation.

✅ If You Don't Qualify for Exclusion:
You may owe capital gains tax on the profit from your sale. Consult a tax professional about your specific situation.

✅ Keep Documentation:
Save your closing statement, records of improvements made to the home (which increase cost basis), and prior purchase documents for tax reporting.

✅ IRS Form 1099-S:
The title company may issue Form 1099-S reporting the sale proceeds to the IRS. This doesn't mean you owe taxes—it's simply a reporting requirement. Your tax professional will help you calculate actual tax liability (if any).

1 Week Before:

✅Review preliminary Closing Disclosure
✅Schedule utility cancellations effective closing date
✅Begin packing and moving preparations
✅Provide bank information for wire transfer
✅Confirm closing appointment time and location

24-48 Hours Before:

✅Complete final cleaning
✅Remove all personal belongings
✅Ensure agreed repairs are complete
✅Gather keys, remotes, manuals
✅Prepare for final walkthrough

Closing Day:

✅Bring government-issued ID
✅Bring keys, remotes, garage openers
✅Arrive on time for closing appointment
✅Review all documents carefully
✅Ask questions if anything is unclear
✅Sign documents
✅Leave keys with title company

After Closing:

✅Confirm wire transfer received or pick up check

✅Cancel insurance
✅Forward mail
✅Save closing documents

Celebrate! 🎉

Q. What time of day do closings usually happen?
A. Seller closings are typically scheduled morning or early afternoon, with buyer closings following later. Exact timing depends on title company scheduling and lender funding timelines.

Q. Do I have to attend closing in person?
A. Generally yes, though remote closing options exist for sellers who have relocated. Both parties on the deed must sign (if married or co-owners).

Q. Can I get my proceeds the same day as closing?
A. Generally yes, but sometimes proceeds are disbursed the next business day after the buyer's lender has funded and all parties have signed. Wire transfers arrive faster than checks.

Q. What if I've already moved out of state?
A. Remote closing options include mobile notary service at your new location or granting power of attorney to someone local who can sign on your behalf.

Q. How long do I need to keep closing documents?
A. Keep your Closing Disclosure/Settlement Statement permanently for tax purposes. The IRS recommends keeping real estate documents for at least 3 years after filing the tax return that reports the sale, but many tax professionals recommend longer.

Q. What happens if closing is delayed?
A. Delays happen occasionally due to funding issues, title problems, or last-minute complications. Your agent and title company work to resolve quickly. Most delays are 1-3 days. If delay is buyer's fault, you may be entitled to per-diem compensation as outlined in the contract.

Q. Do I need an attorney for closing in Texas?
A. Texas doesn't require attorneys for residential closings—title companies handle the process. However, you can hire an attorney if you prefer legal representation (at your expense).