Closing on a House Sale in Texas: Costs and Process

Title company, not attorney

Texas is a title company state. You do not need a lawyer to sell a house here, and most sellers never talk to one. The title company is a neutral escrow agent: it holds the earnest money, examines title, issues the commitment and then the policy, and handles the money and the recording.

An attorney is still worth involving where there is a contested estate, a divorce with an unrecorded decree, a partition dispute, a bankruptcy, or a title defect that needs litigation. Those are legal problems, not closing problems.

The title commitment is the document to read

Texas title commitments follow a promulgated form with four schedules. Schedule A states the transaction. Schedule B lists exceptions — what the policy will not cover, such as easements, restrictions, and mineral reservations. Schedule C lists requirements — what has to be done before the policy issues, which is where payoffs, releases, probate documents, and missing signatures show up. Schedule D discloses who gets paid.

Schedule C is the seller's to-do list. When a sale stalls in Texas, nine times out of ten it is a Schedule C item nobody chased.

What a Texas seller typically pays

• Owner's title insurance policy. Rates are promulgated by the Texas Department of Insurance, so they do not vary between title companies; the seller customarily pays, though the contract controls.
• Loan payoffs and any recorded liens, including delinquent property taxes.
• Prorated property taxes for the seller's portion of the year.
• HOA resale certificate, transfer, and statement-of-account fees where an association exists.
• Escrow and document preparation fees, typically split, plus recording of any releases.
• No transfer or deed tax — Texas does not impose one.
• No realtor commission when we buy directly.

The seller's disclosure notice

Texas requires a seller's disclosure notice for most residential resales of a single dwelling unit, covering known conditions and defects. The statute lists exceptions, including transfers by an executor or administrator, by a trustee in bankruptcy, between co-owners, under a court order, and certain foreclosure-related transfers. An estate sale by an executor is frequently exempt.

Selling as-is does not erase the duty to disclose defects you actually know about. Nothing in an as-is clause protects a seller who conceals a known problem. From our side, candid disclosure is what keeps an offer stable through closing.

Closing remotely from another state

Out-of-state sellers close Texas sales all the time. The title company sends documents for signature before a notary wherever you are, or arranges a remote online notarization, and wires the proceeds. A power of attorney is sometimes used, but the title company has to approve it in advance — do not sign one and assume it will be accepted.

Where a foreign seller is involved, federal withholding under FIRPTA may apply, and the title company handles the paperwork. For a deceased owner's property, the title company will also want the probate documents before it can close.

How long a Texas closing takes

With clear title and no unusual issues, a cash purchase can close in a couple of weeks; the limit is the title search and any payoff or HOA turnaround. Add time when an HOA resale certificate is slow, a lien release has to be chased from a defunct lender, probate is pending, or a survey is needed.

We set the date with you once the commitment is in hand, and we would rather quote a realistic window than a marketing number. If there is a hard deadline — a trustee sale, a tax suit, a court date — say so at the start and we will tell you whether it is achievable.

Frequently asked questions

This guide is general information, not legal, tax, or financial advice. Laws change and every situation is different, so talk with a qualified Texas professional about yours.