Bossier City, LA asked in Real Estate Law for Louisiana

Q: In texas. Is it a law that the seller of a house has to pay All the closing costs

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1 Lawyer Answer
David Barranco
David Barranco
  • Alamo Heights, TX

A: The answer to your question is: “No.” There’s no Texas law forcing property Sellers to pay “All the closing costs.”

Both parties to a typical Texas real estate transaction eat some costs. It’s true that, in residential home sales, Buyers usually pay less than Sellers pay. Here’s a quick summary: Buyers tend to see more line-item expenses on the HUD. Most Buyers take out purchase loans; many charges Buyers pay relate to their loans. Early in the process, each Buyer should receive a “Truth in Lending” statement identifying and approximating his or her costs. Some savvy Buyers shop around for different lenders, interest rates, and costs.

Normally, Sellers see fewer line items on a closing statement. Nevertheless, Sellers generally pay more in dollar terms. Sellers usually pay agent commissions, but commissions are negotiable. It can be less than 6 percent. In Texas, for a residential home sale, the largest individual costs are (usually) property taxes owed and agent commissions. Sellers normally pay both. Please be aware: All fees, costs, and charges can be negotiated during a real estate transaction. If someone claims a specific item is “non-negotiable,” simply increase or decrease the sales price to account for the ostensibly non-negotiable cost.

Although every transaction, like each piece of real property, is unique, Buyers are often asked to absorb several of these closing costs:

• Appraisal fee

• Origination fee

• Pre-paid interest

• Pre-paid insurance

• Flood certification fee

• Tax servicing fee

• Credit report fee

• Bank processing fee

• Recording fee

• Notary fee

• Title insurance

Certain expenses, such as property taxes and/or homeowners association dues, are pro-rated & paid at closing. Bottom line: In a normal Texas closing, both parties absorb some costs.

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