Texas real estate: buy or sell with a local AXEN agent
Texas charges no tax to transfer a deed, but it leans hard on property tax instead. The contract gives a buyer a paid option to walk away, title insurance costs the same at every company, and the deal is not done until it funds. Here is what is the same everywhere in Texas, and where to search homes.
Texas cities we cover
Each guide covers the local neighborhoods, costs and rules for that city.
What every Texas buyer and seller should know
No tax to transfer the deed
The Texas Constitution bans any new transfer tax on a home sale after January 1, 2016 (art. VIII, sec. 29). There is no state or local deed stamp on a normal sale. You still pay county clerk recording fees, your share of property tax, and title and closing charges.
The option period lets you walk away
The TREC resale contract gives the buyer the right to end the deal for any reason during the option period. You pay an option fee and you and the seller pick the number of days. Both are blanks in the contract, not set by law. Notice has to reach the seller by 5:00 p.m. on the last day. The fee goes toward the price at closing and is not refunded.
Most sellers owe you a disclosure notice
Texas Property Code 5.008 makes a seller of a single-unit home give you a written Seller's Disclosure Notice. There are 11 exceptions, including foreclosures, estates, trusts, transfers between family or co-owners, and a brand-new home nobody has lived in. If it comes late, you can cancel for any reason within 7 days of getting it.
Title insurance costs the same everywhere
The Texas Insurance Commissioner sets title premiums, and a company cannot charge a different rate (Insurance Code 2703.151). You pick a title company on service, not price. Escrow fees and endorsements are separate and do vary.
Property tax pays for local services, not income tax
The Legislature cannot tax the net income of individuals. School districts, cities, counties, hospital and college districts and special districts each set their own rate every year. So your bill depends on which districts your address sits in, not on one statewide number.
File for homestead, then the 10% cap kicks in
File Form 50-114 with the appraisal district in each county the home sits in. The general deadline is before May 1 and appraisal districts do not charge to file. You can still file late, up to two years after the taxes went delinquent. The cap starts January 1 of the year after you first qualify, not the year you file. After that the district cannot raise your appraised value more than 10% a year, plus the value of anything you build.
Protest your value by May 15
File a written notice of protest with the appraisal review board by May 15, or by the 30th day after the district mailed your value notice, whichever is later (Tax Code 41.44). A late protest can still be heard if the board finds good cause.
MUD and PID notices come before you sign
If the home sits in a water or utility district, the seller has to give you a signed district notice before the contract is final (Water Code 49.452). In a Public Improvement District, the seller owes you the PID notice before a binding contract, and if it is missing you can cancel within 7 days of getting it. A mandatory HOA is flagged in the contract itself.
Closing costs in Texas: who pays what
Who pays what in Texas. The title premium is set by the state. Most of the rest is contract custom and can be negotiated.
| Buyer pays | How it works |
|---|---|
| Option fee | A flat amount you and the seller agree on. It goes toward the price at closing. |
| Inspections | Priced by the inspector. Your inspector has to hold a TREC licence. |
| Lender's title policy and endorsements | A state-set rate based on the loan. It costs less when issued at the same time as the owner's policy. |
| Loan charges | Appraisal, application, origination, credit, document prep, underwriting, wire and courier. Set by your lender. |
| Half the escrow fee | Split 50/50 unless you change it. The title company quotes the amount. |
| Recording | About $25 for the first page and $4 for each page after, per document, in the big counties. State law sets a $5 base and counties add records and archive fees on top. |
| Prepaid items and reserves | Hazard and flood insurance plus the reserve deposits your lender requires. |
| Survey, when the contract says buyer | Priced by a registered professional land surveyor. |
| Copies of restrictions and title exceptions | Charged by the title company. |
| Seller pays | How it works |
|---|---|
| Owner's title policy | A state-set rate based on the sales price. The contract has a box for buyer or seller. It is negotiated, not fixed by custom. |
| Paying off and releasing liens | Your payoff amount, any prepayment penalty, and the fee to record the release. |
| Tax statements or certificates | A flat fee from each taxing unit's collector. |
| Deed preparation | A flat fee, usually through the title company's attorney. |
| Half the escrow fee | Split 50/50 unless you change it. |
| Existing survey plus the T-47 affidavit | You supply both. A T-47 does not replace a survey, it lets the title company rely on the old one. If you do not deliver both in time, the buyer gets a new survey at your cost. |
| HOA resale certificate | A property owners association can charge up to $375 to put it together and up to $75 to update it, and nothing if the original package is late. Those caps do not apply to condominiums. Condo resale certificates run under a different chapter with no dollar cap. |
| Property tax proration | Current-year tax split through the closing date, then trued up when the real bill lands. |
Lenders and title companies can reject an old survey. Recording totals vary by county because counties add their own records and archive fees. Ask your AXEN agent for the numbers in your county before you sign.
How a Texas home purchase runs
From the effective date to funding, most Texas sales run 30 to 45 days. Here is the order, and which parts are law rather than contract.
Get pre-approved →-
Effective date set. Your broker writes in the date of final acceptance. Every other deadline counts from that day.
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Earnest money and option fee delivered. You send both to the escrow agent within 3 days of the effective date. If day 3 is a weekend or legal holiday it moves to the next business day. Miss the option fee and you lose the free right to walk.
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Option period inspections. You order inspections, the seller keeps utilities on and gives access. You can terminate for any reason by 5:00 p.m. on the last day, or ask for repairs by amendment.
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Title commitment delivered. The title company has 20 days after it gets the contract. If it is late, the time extends and you may terminate.
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Survey furnished, title objections made. The seller delivers the existing survey and T-47, or a new survey is ordered. You object in writing inside the window in your contract. The seller then gets 15 days to cure.
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Financing approval. You apply right away. The Third Party Financing Addendum sets the days to get buyer approval. Property approval, which covers appraisal, insurability and lender-required repairs, runs until 3 days before closing.
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Closing Disclosure delivered. On most consumer mortgages the lender has to make sure you receive the Closing Disclosure at least 3 business days before you sign. That one is federal law.
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Final walkthrough and signing. You recheck the home, then the seller signs and delivers a general warranty deed and tax certificates and you pay in good funds.
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Funding, then recording. In Texas the deal is not done at signing. The title company cannot disburse until good funds arrive. Then it records the deed and deed of trust with the county and you get the keys. Same day or the next business day.
Texas by region
Texas buyers shop by metro as much as by town. Tap a city for homes for sale there.
Dallas-Fort Worth
A big inland metro built around Dallas and its northern suburbs. A lot of newer neighborhoods sit inside an HOA, a MUD or a PID, so those notices come up often.
Greater Houston
The Gulf Coast metro in Harris County and its neighbors. Flood zones and MUDs matter here, and the seller's disclosure notice asks straight out about water damage and drainage.
South Central Texas and the Hill Country
San Antonio anchors Bexar County. New Braunfels sits across the Comal and Guadalupe county line on the I-35 corridor, so check which appraisal district holds your homestead filing.
AXEN Realty in Texas
Every AXEN agent in Texas works under a licensed managing broker: Sonny Walton (AXEN Realty, LLC, firm license 9015996-BB). See every state on the state brokers page.
Buying? Start with the home buying guide and get pre-approved.
Selling? Read the home selling guide and get your home value.
Moving here? Read buying in a new state.
Real estate agent? Changing brokerages in Texas: you send a request, your new broker accepts; state fee: shown in REALM. See how to transfer a Texas license, the switching checklist, advice for new agents and how keeping 100% works.
Texas real estate questions
Do I pay a state tax when I buy or sell in Texas?
No. The Texas Constitution bars any new transfer tax on a home sale after January 1, 2016. You will still pay county clerk recording fees, your share of property tax, and title and closing charges.
Can I shop for cheaper title insurance?
Not on the premium. The Insurance Commissioner sets title rates and no company may charge a different one. You can still compare escrow fees, service and how fast they close. Ask for the full fee sheet, not just the premium.
How long is the option period?
It is a blank in the TREC contract. You and the seller agree on the days and the fee. Nothing in Texas law sets either one. Your notice to terminate has to reach the seller by 5:00 p.m. on the last day.
What if the seller never gives me the disclosure notice?
If you signed without it, you can cancel for any reason within 7 days after you receive it. The contract also lets you terminate any time before closing if it never shows up, and your earnest money comes back.
When do I file for my homestead exemption?
File with your county appraisal district before May 1. Appraisal districts do not charge to file. If you bought after January 1 you may still qualify for part of that year. You can file late, up to two years after the taxes went delinquent.
How much can my appraised value go up each year?
Once your homestead exemption is in place, the district cannot raise the appraised value more than 10% over last year, plus the market value of anything new you built. The cap starts January 1 of the year after you first qualify.
What is a MUD and how will I know if I am in one?
A MUD is a water, sewer or drainage district that taxes property inside its lines. If your home is in one, the seller has to hand you a signed notice about the district's tax rate, bonded debt and standby fee before the contract is final.
When is the deal actually done?
Not when you sign. The title company cannot pay anyone out until good funds land in its account. Once the lender wires and the file funds, the title company records the deed and the deed of trust with the county and you get possession.