Buying or selling in Kaufman and unsure what you will actually pay at the closing table? You are not alone. Texas has a few customs that can surprise first-time buyers and out-of-state sellers, and even seasoned locals like to double-check the details. In this guide, you will see who typically pays what in Kaufman, how Texas rules like the option period work, and where to confirm exact fees for your deal. Let’s dive in.
What buyers pay in Kaufman
Lender and loan fees
If you are financing, your lender will outline their charges on your Loan Estimate and Closing Disclosure. Expect items like origination or underwriting fees, a credit report fee, and an appraisal. Appraisals are commonly paid up front. Exact amounts vary by lender and loan type, so ask your lender for current numbers early.
Title and settlement fees
In Texas, buyers usually pay for the lender’s title insurance policy when there is a mortgage. You will also see a settlement or closing fee from the title company that handles the closing. The owner’s title insurance policy is customarily a seller cost in Texas, but it is negotiable and should be confirmed in your contract and on the settlement statement.
Prepaids and escrows
Most lenders collect prepaid items and initial escrow deposits to set up your mortgage account. This often includes your first year of homeowner’s insurance, prepaid interest from your closing date to your first payment, and a few months of tax and insurance reserves. The title company will itemize these on your final statement.
Inspections and the option period
Buyers typically pay for a general home inspection and any specialty inspections you choose, such as termite, HVAC, roof, septic, or well. In Texas, you may also pay an option fee to the seller to secure a short option period. This gives you the right to terminate for any reason within that window. The option fee amount is negotiated in the contract and is typically nonrefundable if you close, though it can be credited at closing if both sides agree.
HOA and other small fees
If the property is in an HOA, you may see a buyer transfer fee or dues prorated from the closing date. Expect small line items like courier, wire, or document prep fees as well. Your title company can give you a quick quote so you can budget with confidence.
What sellers pay in Kaufman
Commissions and title policy
Real estate commissions are usually the largest seller expense and are negotiated in your listing agreement. In Texas, it is common for sellers to pay the owner’s title insurance policy premium, a one-time cost based on the sales price. Confirm who pays in your contract since this can be negotiated.
Taxes, HOA, and payoffs
Property taxes are prorated through the day of closing. That means you will pay your share for the portion of the year you owned the home. If there is an HOA, Texas properties often require a resale certificate and related fees. Many sellers pay for the resale packet as part of the sale. You will also pay off any mortgages and liens, including any payoff and recording fees for the release.
Repairs and credits
If you agreed to repairs or a credit after inspections, those costs will show on your settlement statement. Sellers can also agree to pay part of the buyer’s closing costs, subject to the buyer’s loan program limits. Work with your agent to structure credits in a way that aligns with lender rules and your bottom line.
Texas customs that surprise many
Option fee and option period
The option period is a Texas contract feature that lets a buyer terminate for any reason within a set number of days. The buyer pays an option fee to the seller for this right. It is usually nonrefundable if the buyer closes, though it may be applied to the purchase at closing if agreed in the contract. Plan for this payment early so inspections can be scheduled right away.
Who pays owner’s title insurance
In many Texas markets, including Kaufman, it is customary for the seller to pay for the owner’s title insurance policy. This is not a rule and can be negotiated. Always confirm what your contract says and review the title company’s settlement statement before closing.
Negotiating costs and credits
Seller concessions and lender limits
Buyers can request seller concessions to cover some of their closing costs. These credits are negotiated in the purchase contract, but loan programs set limits on how much a seller can contribute. Since these limits vary by loan type and down payment, ask your lender for the exact cap before you write or accept an offer.
Earnest money vs option fee
Buyers typically deposit earnest money with the title company. It is usually credited to you at closing or refunded if you terminate properly under the contract. The option fee is paid directly to the seller for the option period. Track these separately and make sure each payment is delivered on time according to your contract.
Local Kaufman County mechanics
Title companies handle closing
In Kaufman County, title companies act as the closing and escrow agent. They prepare the final settlement statement, coordinate the Closing Disclosure for financed loans, collect funds, and record documents. Your title officer is the best source for exact title premiums and settlement charges on your specific property.
Recording fees and taxes
Documents such as the deed and any deed of trust are recorded with the Kaufman County Clerk. Recording fees depend on the number and type of documents. For current recording charges and e-recording options, check with the title company handling your closing or contact the County Clerk for the latest schedule.
HOA resale certificates
Texas HOAs often require a resale certificate that includes key disclosures. There is usually a fee for this packet. Ask your agent which party will pay and when it will be ordered so it does not delay closing.
Hypothetical example: 300,000 purchase
To show how costs flow, here is a simple example. These are illustrative only, not local estimates. Always rely on your lender and title company for exact numbers.
Buyer side examples:
- Loan origination or points: 0.5 to 1.5 percent of the loan amount. For example, 1,500 to 4,500.
- Appraisal: 450.
- Credit report and underwriting: 50 to 500.
- Lender’s title policy and recording: 300 to 1,000.
- Owner’s title policy: customarily paid by seller in Texas. On this price, a general range might be 1,500 to 2,000, but the title company will quote the exact premium.
- Prepaids and escrow deposits: 1,000 to 3,000 depending on taxes and insurance.
- Inspections: 300 to 1,000 based on scope. Specialty inspections for septic or wells are common for acreage and rural homes.
- Option fee paid to seller: 100 to 500, negotiated in the contract.
Seller side examples:
- Real estate commission: often 5 to 6 percent as a general example. Commission amounts are negotiable.
- Owner’s title policy: commonly 1,500 to 2,000 on this price. The title company will provide the exact premium from state rate tables.
- Prorated property taxes: varies by tax rate and time of year.
- HOA resale and transfer fees: can range from 0 to 400 plus, depending on the HOA.
Quick checklist and who to ask
Buyers
- Ask your lender for a detailed Loan Estimate now and your Closing Disclosure as soon as it is ready.
- Request a written title and settlement fee quote from the title company handling your Kaufman closing.
- Decide on inspections you want, including septic, well, or survey needs on acreage or rural properties.
- Verify who pays the owner’s title policy and HOA transfer fees in your contract.
- Confirm seller credit limits with your lender before you negotiate concessions.
Sellers
- Review your net sheet with your agent, including commissions, owner’s title policy, prorated taxes, and HOA resale fees.
- Order the HOA resale certificate early if the property is in an association.
- Confirm mortgage payoff amounts and any payoff or release recording fees.
- Clarify which repairs or credits you are offering and how they will appear on the settlement statement.
- Ask the title company to explain any line items you do not recognize.
Final thoughts
Every Kaufman transaction is a little different. Your exact closing costs depend on loan type, purchase price, timing, and negotiated terms. The clearest path is to get firm quotes from your lender and the title company, then use your contract to confirm who pays each item. If you want help navigating Texas customs like the option period, seller-paid title policies, or HOA resale fees, you are not alone.
Ready for local, hands-on guidance in Kaufman and the East Texas area? Reach out to Debbie Wold for a simple breakdown of your numbers and a plan to negotiate the best outcome.
FAQs
Who pays for owner’s title insurance in Texas?
- Customarily the seller pays for the owner’s title policy, but it is negotiable and should be confirmed in the contract and on the settlement statement.
What is the Texas option fee and is it refundable?
- The option fee is paid by the buyer to the seller for the right to terminate during the option period and is typically nonrefundable if the buyer proceeds to closing, though it may be credited at closing if agreed.
Can a seller pay a buyer’s closing costs in Kaufman?
- Yes, as a negotiated seller concession or credit, but loan programs set limits on how much a seller can contribute, so buyers should confirm caps with their lender.
How are property taxes handled at closing in Texas?
- Taxes are usually prorated through the day of closing using the most recent bill or an estimate, with each party paying their share for the time they owned the property.
Do buyers need a new survey in Kaufman County?
- It depends on lender and title requirements; a buyer can request a new survey or use an existing one with a title endorsement if acceptable to the title company and lender.
Where can I verify Kaufman County recording fees?
- Ask your title company for current recording charges or contact the Kaufman County Clerk to confirm the latest fee schedule.
