Q: In texas. Is it a law that the seller of a house has to pay All the closing costs
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.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.