Texas · TREC 20-19 resale contractWho pays closing costs in Texas? The buyer's and seller's expenses under TREC 20-19
Paragraph 12 of the TREC resale contract lists who pays what at or before closing. The seller pays releases of existing liens (with prepayment penalties and recording fees), the release of the seller's loan liability, tax statements or certificates, preparation of the deed, one-half of the escrow fee and anything else the contract puts on the seller – plus any dollar amount the seller agrees in ¶12A(1)(b) to put toward the buyer's expenses. The buyer pays the loan costs (appraisal, application, origination, credit reports, loan documents, underwriting, the lender's title policy and lender-required inspections), recording fees, one-half of the escrow fee, all prepaid items such as insurance, tax and assessment reserves, and PMI, the VA funding fee or the FHA MIP when the lender requires them. Who pays for the owner's title policy is a checkbox in ¶6A. Brokerage compensation is not set by law and is fully negotiable; each party pays its own broker under their written agreements, with optional contributions in ¶12B. If a government loan program bars the buyer from paying a charge, the seller's concession pays those charges first (¶12C).
Seller's expenses (¶12A(1))
Liens
Releases of existing liens, prepayment penalties and recording fees; release of the seller's loan liability.
Taxes and deed
Tax statements or certificates; preparation of the deed.
Escrow
One-half of the escrow fee.
Concession
Up to the dollar amount written in ¶12A(1)(b) toward the buyer's expenses – not brokerage compensation.
Buyer's expenses (¶12A(2))
Loan costs
Appraisal, application, origination, credit reports, loan documents, underwriting, wire and courier fees, and other loan expenses.
Lender title and inspections
Loan title policy with lender-required endorsements; loan-related, repair and final compliance inspections.
Escrow and recording
One-half of the escrow fee; recording fees; copies of easements and restrictions.
Prepaids
Interim interest, insurance premiums and reserves, ad valorem taxes and special assessments.
Mortgage insurance
PMI, the VA funding fee or the FHA MIP when the lender requires them.
Decided by checkbox or blank
- Owner's title policy at the seller's or the buyer's expense (¶6A).
- Seller contribution toward the buyer's broker, or buyer contribution toward the seller's broker (¶12B) – broker pay is fully negotiable.
- A VA or other government loan: the seller's ¶12A(1)(b) concession first covers charges the buyer is not allowed to pay (¶12C).
Questions buyers and sellers ask
Who pays for the owner's title policy in Texas?
Whoever the contract says: ¶6A of the TREC resale contract has a checkbox for the seller's or the buyer's expense.
Who pays the escrow fee in Texas?
Under the TREC resale contract, the seller and the buyer each pay one-half of the escrow fee (¶12A).
Does the Texas contract say who pays the real estate commission?
No fixed amount: brokerage compensation is not set by law and is fully negotiable; each party pays its own broker under separate written agreements, with optional contributions in ¶12B.
Related guides
ClosingCode's contract reader takes the price, dates and parties from the signed TREC contract, so the deal starts with the numbers the settlement statement will be checked against.
Start free trialSource: TREC One to Four Family Residential Contract (Resale) 20-19, version 05-04-2026, paragraphs 6A and 12 (read October 25, 2026).
General information about the TREC resale contract, not legal advice. The parties can agree otherwise in writing. ClosingCode is software; it is not a law firm or title company and is not a substitute for the advice or services of an attorney. This guide is not a substitute for the advice or services of an attorney.