Who actually pays for the title policy in a Frisco or broader DFW home sale? If you are comparing offers or planning your cash to close, the answer matters. You want a clear picture of local custom and what is negotiable so you can write a smarter contract and avoid surprises at the closing table. In this guide, you will learn who typically pays what in Collin County and Dallas-Plano-Irving, how the contract controls the final split, and simple steps to estimate your numbers with confidence. Let’s dive in.
Owner’s vs. lender’s title policy
Title insurance in Texas comes in two forms that protect different parties.
- Owner’s title policy protects you, the buyer, for the purchase price. It is a one-time premium paid at closing.
- Lender’s title policy protects the mortgage lender for the loan amount. If you finance your purchase, your lender will require this policy.
Texas regulates title premiums, and title companies handle the title search, commitment, and closing logistics. While rates are set at the state level, who pays each item is decided by your purchase contract.
DFW custom at a glance
Local custom across much of Texas, including Frisco, Collin County, and Dallas-Plano-Irving, is straightforward.
- Seller usually pays the owner’s title policy. This is a strong statewide norm and common in DFW.
- Buyer usually pays the lender’s title policy and loan-related fees if financing.
- Escrow or settlement fees are often split 50/50, though the split is negotiable and can vary by title company or neighborhood practice.
- Recording fees are split by role. Sellers typically pay to release their mortgage and related payoff paperwork. Buyers typically pay to record the new deed and any new mortgage.
- Texas has no state real estate transfer tax. Local transfer taxes are generally not imposed, which helps simplify your closing costs.
- Property taxes and HOA dues are prorated. You and the other party settle up for the period you each own the home, based on the contract.
These are norms, not rules. The written contract controls.
Typical cost split checklist for Frisco and Collin County
Use this quick checklist as you compare offers and estimate proceeds or cash needed to close.
Owner’s title policy
- Typical payer: Seller
- Notes: One-time premium based on the purchase price. The contract should clearly name who pays.
Lender’s title policy and lender-required endorsements
- Typical payer: Buyer (if there is a mortgage)
- Notes: Usually part of the buyer’s loan costs.
Escrow or settlement fee (title company closing fee)
- Typical payer: Often split 50/50
- Notes: Some deals assign this fee to one side. Put the split in writing.
Title search, exam, and commitment
- Typical payer: Often bundled with the owner’s policy costs
- Notes: Ask the title company for an itemized estimate so you can see how they categorize these fees.
Recording fees
- Seller: Mortgage release and payoff documents
- Buyer: New deed and new mortgage recording
- Notes: County fees vary. Your title company can quote the exact amounts for Collin and Dallas counties.
Property taxes and HOA dues
- Typical payer: Prorated between buyer and seller
- Notes: The contract sets the method. Expect credits on the final settlement statement based on the closing date.
Survey and survey endorsement
- Typical payer: Negotiable
- Notes: If a new survey is needed, the buyer sometimes pays, or the seller may provide an existing survey with a seller-paid affidavit. Confirm in the contract.
Courier, wire, and notary fees
- Typical payer: Split or paid by the party requesting the service
- Notes: Modest costs that can vary by title company.
Home warranty
- Typical payer: Negotiable
- Notes: The seller may offer it as a concession or the buyer can purchase it directly.
Realtor commission
- Typical payer: Customarily paid from the seller’s proceeds
- Notes: Commission terms are negotiated with the listing agent.
How Texas title premiums are set
Texas regulates title insurance. Premiums are based on a state rate schedule tied to the purchase price and are paid once at closing. Because rates are set, different title companies will quote the same base premium for the same price.
If you want a precise figure for your address and contract price, ask the title company for a written closing cost estimate. You can also request a sample settlement statement for your county and price point. This will show line-by-line title premiums, prorations, and recording fees without guessing.
Contract terms decide who pays
Custom is helpful, but the contract is the final word in Texas. Most residential transactions use standard forms that have specific blanks to assign who pays for the owner’s policy, the lender’s policy, escrow fees, and recording costs. Make sure those blanks are filled in exactly as you and the other party intend.
Key items to confirm before you sign:
- Who pays the owner’s title policy and the lender’s title policy
- How the escrow or settlement fee is split
- Who selects the title company, and whether that is tied to who pays the owner’s policy
- Any seller credits toward buyer closing costs, including lender fees or rate buydowns
- Proration method for property taxes and HOA dues
If you are financing, you will receive a Closing Disclosure at least three business days before closing. Review it closely. It will show your borrower-paid fees, any seller credits, and your final cash to close.
Market conditions can shift who pays
Negotiations reflect the market. In a strong seller’s market, sellers may resist concessions and ask buyers to pay more closing costs, including some or all of the owner’s policy. In a buyer-favorable market, sellers may sweeten the deal by covering extra buyer fees, rate buydowns, or warranties. The right strategy depends on your price point, neighborhood, and the level of competition.
Builder and new construction nuances
If you are buying new construction in Collin County or North Dallas, builders often offer incentives. Many will cover the owner’s title policy or a portion of your closing costs, particularly if you use their preferred title company. Some builders request you use their title partner for streamlined processing. Ask for the incentive sheet up front, and make sure the contract clearly states who pays each item.
Estimating seller net proceeds
If you are selling in Frisco, Plano, or the Dallas-Plano-Irving corridor, start with a simple framework to estimate your bottom line. Your title company or agent can provide a sample seller’s net sheet to plug in your exact contract details.
- Begin with the contract price.
- Subtract the owner’s title policy if you are paying it per local custom.
- Subtract broker commission per your listing agreement.
- Subtract payoff amounts for any mortgages and home equity loans.
- Subtract prorated property taxes through the closing date.
- Subtract recording, escrow, and courier fees assigned to you in the contract.
- Subtract any seller concessions, such as buyer closing cost credits or a home warranty.
This gives you a realistic estimate of proceeds before moving expenses or repairs.
Estimating buyer cash to close
For buyers in Collin County or central Dallas, focus on three buckets: down payment, closing costs, and prepaids.
- Down payment per your loan terms.
- Closing costs including the lender’s title policy, loan origination, appraisal, credit report, and escrow fee share.
- Prepaids and reserves such as initial escrow for taxes and insurance.
If the seller is paying the owner’s title policy, your cash to close typically drops compared to markets where buyers cover that premium. Ask your lender and title company to coordinate an early estimate so you can plan with confidence.
Smart steps before you commit
A little preparation goes a long way when you are writing or reviewing offers in DFW.
- Request a preliminary title estimate from the title company.
- Confirm in writing who pays for the owner’s and lender’s policies.
- Specify the escrow fee split and the title company selection.
- Ask for a sample settlement statement for your price point and county.
- If financing, review your Closing Disclosure as soon as it is issued.
Heading into negotiations with clear numbers and clean contract language helps you avoid last-minute surprises and strengthens your position.
Bottom line for DFW buyers and sellers
In Frisco and across Collin County and Dallas-Plano-Irving, it is customary for the seller to pay the owner’s title policy, while buyers typically cover the lender’s policy and loan-related fees. Escrow fees are often split. Texas does not impose a state transfer tax. Every detail is negotiable, and your written contract decides who pays what. When you know the local norms and lock in clear terms, you can compare offers on apples-to-apples terms and protect your bottom line.
Ready to review your numbers and strategy for your neighborhood and price point? Reach out to Christian Smith for a tailored walkthrough and a clean, contract-ready plan.
FAQs
In DFW, who usually pays the owner’s title policy?
- In Frisco and Collin County, the seller commonly pays the owner’s title policy, but the contract can assign it to either party.
Who typically pays the lender’s title policy in Texas?
- Buyers who finance usually pay the lender’s title policy and loan-related fees unless the seller offers concessions.
How are escrow or settlement fees split in Collin County?
- Many DFW closings split the escrow fee 50/50, but it is negotiable and should be written into the contract.
Does Texas charge a real estate transfer tax at closing?
- No. Texas does not have a state real estate transfer tax, and local governments generally do not impose transfer taxes.
How do I estimate my seller net proceeds in Frisco?
- Start with your contract price and subtract the owner’s title policy if you are paying it, commission, mortgage payoffs, prorated taxes, assigned fees, and any concessions.
Can the party who pays the owner’s policy choose the title company?
- Often the paying party requests title company selection, but it is negotiable and should be stated in the contract.
What should a Collin County buyer review before closing?
- Ask for a detailed estimate from the title company and review your Closing Disclosure, which lists borrower-paid costs and any seller credits.
