Quick Answer
Texas closing costs typically include title insurance premiums (TDI-regulated, uniform across companies), escrow fees, recording fees, survey costs, lender fees, and prorated taxes. Under the 2026 TDI rate schedule with a 6.2% reduction, the approximate basic title premium on $268,500 of coverage is about $1,612. Total closing costs vary by transaction type and location.
Understanding closing costs is essential for anyone buying or selling real estate in Texas. Here is a breakdown of typical costs and who pays them.
Title Insurance Premiums in Texas
Title insurance premiums are the largest component of closing costs in many Texas transactions. As discussed in our guide to the 2026 TDI rate reduction, all licensed Texas title companies charge the same TDI-approved basic premium rates. For an owner's policy on a $268,500 purchase, the basic premium is approximately $1,612. Use our Texas Title Premium Calculator for a precise estimate.
Typical Closing Costs in Texas
In addition to title insurance, Texas closings may include: escrow or settlement fees, recording fees for the deed and deed of trust, document preparation fees, notary fees, courier fees, survey costs, appraisal fees, and lender-required fees for financed transactions. The seller typically pays the owner's title insurance policy in many Texas transactions, though this is negotiable.
Who Pays What
The allocation of closing costs depends on the purchase contract. In many Texas residential transactions, the seller pays for the owner's title insurance policy, the buyer pays for the lender's policy, and other costs are divided according to the contract. The title company prepares a Closing Disclosure (for financed transactions) or an ALTA Settlement Statement that itemizes all costs.
Property Research Before You Buy
Before you buy, before you invest, know more about the property. 1st Option Title offers free Property DNA Reports that provide comprehensive property research information. A Property DNA Report is not title insurance or a legal opinion. It is an informational research report to help you make informed decisions.
FAQs
Are closing costs negotiable in Texas?
Some closing costs are negotiable between buyer and seller. However, TDI-regulated title insurance rates are fixed and cannot be discounted. The allocation of costs is determined by the purchase contract.
Can I get an estimate of Texas closing costs?
Yes. Use our Calculators & Tools page for various closing cost estimators and the Texas Title Premium Calculator for title insurance premium estimates.