Texas closing math

    Texas seller's net sheet calculator, itemized to net proceeds.

    Add commission, owner's title insurance, recording fees, HOA transfer fees, and the property tax proration, then see the seller's estimated net proceeds line by line.

    Quick answer

    A Texas seller's net proceeds is the sale price minus the mortgage payoff, commission, any owner's title premium, recording fees, the property tax proration credit, and closing fees. Texas has no state transfer or stamp tax, so there is no stamp-tax line. The owner's title premium is negotiable by contract, and it is common for the seller to pay it in Texas.

    Real estate commission
    Seller

    Negotiated percentage of the sale price, paid from seller proceeds.

    Owner's title insurance
    Negotiable, often seller

    Premium rates are promulgated by the Texas Department of Insurance. The seller commonly pays in Texas, but it is negotiable by contract.

    Recording fees
    Seller

    Recording the release of the seller's deed of trust once the existing loan is paid off.

    Property tax proration
    Seller credits buyer

    Texas taxes are paid in arrears, so the seller credits the buyer through the day before closing.

    Net sheet

    Build the seller's side, line by line.

    Who pays owner's title insurance?

    In Texas, who pays the owner's title premium is negotiable. The seller commonly pays in much of the state, but it can shift to the buyer by contract or local custom. Confirm your contract.

    Proration method
    Texas note: there is no statewide real estate transfer tax. The seller commonly pays the owner's title premium and the real estate commission, property taxes are paid in arrears so the seller credits the buyer through the day before closing, and recording covers the release of the seller's deed of trust. Confirm every line with your closing agent.
    Estimated net proceeds to seller
    $96,389.73
    $425,000.00 sale price minus $298,000.00 payoff and $30,610.27 in costs and credits.
    Sale priceStarting point for the net sheet
    $425,000.00
    Less: Mortgage payoffSeller's loan balance paid at closing
    - $298,000.00
    Less: Real estate commission$425,000.00 x 6.00%
    - $25,500.00
    Less: Owner's title insurancePromulgated Texas premium on $425,000.00
    - $2,200.00
    Less: Property tax proration credit181 of 365 days credited to the buyer (taxes paid in arrears)
    - $2,380.27
    Less: Settlement or closing feeSeller's side of the closing fee
    - $500.00
    Less: Recording and releaseRecording the release of the seller's deed of trust
    - $30.00
    Estimated net proceedsSale price minus payoff, costs, and credits
    $96,389.73
    Texas note

    This is an estimate for planning. Texas has no transfer tax. The owner's title premium shown is a study estimate of the promulgated tiered schedule, not an exact rate quote. Who pays that premium is negotiable, settlement and HOA fees vary by closing agent and association, and the property tax proration uses the most recent bill because Texas taxes are paid in arrears.

    Save it

    Email this net sheet and the Texas template.

    Get the itemized seller costs, the title-custom note, and your current breakdown in one printable net sheet.

    Open the Texas seller's net sheet template

    This is the forward net sheet, not the reverse price tool

    This calculator starts from a known sale price and itemizes every Texas seller cost down to net proceeds. If instead you know the net you need and want to solve for the sale price that reaches it, use the seller net and required sale price calculator, which works the same math backward.

    Why the title premium matters

    The single biggest swing on a Texas seller net sheet is the owner's title insurance premium, which can run over a thousand dollars. Who pays it is negotiable by contract, though it is common for the seller to pay in Texas. Getting that one line right changes the net more than most fees combined.

    Who customarily pays each line at a Texas closing
    Closing itemCustomary payerNote
    Real estate commissionSellerPaid from the seller's proceeds at closing.
    Owner's title insurance premiumNegotiable, often sellerCommon for the seller to pay in Texas; the contract controls.
    Lender's title policyBuyerTied to the buyer's new loan, when financed.
    Property tax prorationSeller credits buyerTaxes in arrears, prorated through the day before closing.
    Release of seller's deed of trustSellerRecording the payoff release of the seller's existing loan.
    Recording the deedBuyerDistinct from recording the seller's release.
    Settlement or closing feeEach sideEach party usually pays its own closing fee.
    HOA transfer or resale feeNegotiableHOA transfer, resale certificate, and transfer fees are allocated by contract.

    These payers are defaults, not rules. In Texas every line is negotiable by contract, and it is common for the seller to pay the owner's title premium. Always confirm the payer in the signed contract.

    Texas promulgated owner's title premium

    Texas sets owner's title insurance premium rates through the Texas Department of Insurance, so the premium is the same at every title company for the same coverage amount. Title companies can add separate escrow and settlement fees on top of the promulgated premium. The premium this calculator shows is a study estimate of that tiered schedule, not a rate quote; confirm the exact figure against the current TDI Basic Premium Rate table or your title company.

    Promulgated owner's policy premium tiers (TDI)
    Policy bandRate
    First $25,000 of policyPromulgated base premium
    $25,000 to $100,000Promulgated tier rate per $1,000
    $100,000 to $1,000,000Lower promulgated tier per $1,000
    $1,000,000 to $5,000,000Lower promulgated tier per $1,000
    Over $5,000,000Lowest promulgated tier per $1,000
    Official references

    Where the rates and customs come from.

    This calculator is built for planning and exam prep. The promulgated title premium comes from the Texas Department of Insurance, the property tax proration context from the Texas Comptroller, and the proration provisions from TREC's promulgated contract forms. Reviewed June 2026.

    Who pays closing costs when selling a house in Texas?+

    The Texas seller customarily pays the real estate commission, the recording of the release of the seller's existing deed of trust, and a property tax credit to the buyer for taxes that are paid in arrears. The owner's title insurance premium is negotiable by contract, and it is common for the seller to pay it in Texas. Texas has no state transfer or stamp tax.

    Who pays for owner's title insurance in Texas?+

    It is negotiable by contract. In Texas it is common for the seller to pay for the owner's title insurance policy, but the signed contract controls who pays. The party who pays the premium often selects the title company, though this is negotiable.

    How is the owner's title insurance premium calculated in Texas?+

    Texas promulgates owner's title insurance premium rates through the Texas Department of Insurance, so every title company charges the same premium for the same coverage amount. The premium is set by tiered rate bands on the policy amount. Title companies may add separate non-promulgated fees such as escrow and settlement charges.

    How does property tax proration work for a Texas seller?+

    Texas property taxes are paid in arrears, meaning the bill issued late in the year covers that calendar year. At a mid-year closing the seller credits the buyer for the part of the year the seller owned the property, from January 1 through the day before closing, because the buyer will receive the full-year bill. The Texas exam uses both 360-day and 365-day methods, and the question tells you who owns the closing day, so the two can give slightly different numbers.

    What is the difference between equity and seller net proceeds?+

    Equity is the sale price minus the mortgage payoff. Net proceeds is what the seller actually walks away with after also subtracting commission, any owner's title premium, recording fees, the tax proration credit, settlement fees, and other costs. Net proceeds is always lower than equity once selling costs are included.

    Is this seller net sheet calculator for the exam or a real closing?+

    It works for both. The commission and proration pieces are exactly what the Texas exam tests, so you can drill them in Math Coach. The itemized title, recording, HOA, and settlement lines make it a realistic planning net sheet, but a real closing disclosure from your title company is the controlling document.

    Exam-relevant pieces

    The net sheet is real-world.
    The math behind it is on the exam.

    Commission and tax proration are tested directly. Drill them in Math Coach, then use the full net sheet for planning.

    Pass Texas is exam prep for the Texas sales agent test. $59.99 one-time. No subscription. No copied exam questions.

    Sources reviewed June 2026: Texas Department of Insurance promulgated title premium rates, Texas Comptroller property tax guidance, and TREC promulgated contract form proration provisions. This page is for planning and exam preparation, not legal, tax, or closing advice. Your title company's closing disclosure is the controlling document.