The Texas Home-Selling Process: Your Step-by-Step Checklist

Texas agents are required by law to use TREC-promulgated contract forms for residential sales. The standard form for an existing home is the One to Four Family Residential Contract (Form 20-17). Your agent will walk you through every paragraph—pay close attention to the sales price, closing date, what personal property is included or excluded, and the option period terms in Paragraph 5.

Cost: $0

Earnest money is a good-faith deposit the buyer places with the title company. It typically ranges from 1-3% of the purchase price, though there is no legal minimum in Texas. A higher earnest money amount shows stronger buyer commitment. If the buyer terminates the contract outside of their option period or other contract contingencies, you may be entitled to keep the earnest money as liquidated damages.

Cost: $0

Paragraph 5 of the TREC residential contract gives the buyer an unrestricted right to back out during the option period for any reason, in exchange for a non-refundable option fee paid directly to you. The option fee and number of days are negotiated—common ranges are $100-$500 and 5-10 days. You keep the option fee regardless of whether the buyer terminates. The option fee must be delivered to you or your agent within three calendar days of the effective contract date.

Cost: $0

You have three choices: accept the offer as written, send a counteroffer changing specific terms, or reject it outright. If you counter, the buyer can then accept your counter, issue their own counter, or walk away. A contract is only binding once both parties have signed and the signed copy has been delivered to both sides. Your agent will manage the back-and-forth communication.

Cost: $0

After the NAR settlement effective August 17, 2024, you are no longer required to offer any compensation to a buyer's agent through the MLS. You may still choose to offer compensation to attract more buyers, and any agreement must be in writing. Your agent can advise you on what is common in your local market. This decision can be part of the offer negotiation.

Cost: varies

The buyer must deliver the non-refundable option fee directly to you or your agent within three calendar days of the effective contract date—not to the title company. Make sure you or your agent actually receives payment (personal check, cashier's check, or electronic transfer as agreed). If the buyer fails to deliver the option fee on time, the option period is void and the buyer loses the unrestricted right to terminate.

Cost: $0

Your agent or the buyer's agent will send the executed contract to the title company named in the contract. The title company opens a file, orders a title search on your property, and will eventually issue title insurance. In Texas, the seller typically chooses the title company, though this is negotiable. The title company also holds the buyer's earnest money in a separate escrow account.

Cost: $0

The title company will ask you for certain items to prepare for closing. These typically include your current mortgage payoff information (they will order a payoff statement from your lender), HOA contact information, a survey of the property if you have one, and any warranties or appliance manuals you plan to convey with the home. Gathering these early avoids delays.

Cost: $0

Texas's homestead protections are written into the state constitution. Under Texas Property Code Section 5.001, if the property is a homestead and you are married, both spouses must sign the deed and any deed of trust—even if only one spouse is on the title. This is not optional and cannot be waived. Alert the title company early if your spouse's name is not on the deed so they can prepare the correct closing documents.

Cost: $0

The buyer has the right to have the property inspected during the option period. You must allow reasonable access. A standard home inspection covers the structure, roof, electrical, plumbing, HVAC, and other major systems. The buyer pays for the inspection. You do not have to be present, but your agent should coordinate access with the buyer's agent.

Cost: $0

After the inspection, the buyer may submit a repair amendment (sometimes called an Amendment to Contract) listing items they want repaired or a dollar credit at closing in lieu of repairs. Your agent will receive this on your behalf. You have the same three choices as with the original offer: agree to all repairs, counter with some repairs, or reject the request entirely. If you reject and the buyer is still in the option period, they can terminate.

Cost: $0

You can respond to a repair request in three common ways: agree to have specific items fixed by a licensed contractor before closing, offer a dollar credit to the buyer at closing so they can handle repairs themselves, or offer a reduction in the sales price. Cash credits and price reductions must be approved by the buyer's lender if the buyer is financing the purchase. Your agent can advise on what is typical for your price range and market.

Cost: varies

Texas's expansive clay soils make foundation movement very common. The Seller's Disclosure Notice directly asks about foundation repairs, cracks, settling, and drainage problems. If you have had foundation work done—pier installation, cable tensioning, slab repair—you must disclose it, including the contractor's name if you know it and whether a warranty is transferable. Failing to disclose known defects is a violation of Texas Property Code Section 5.008 and grounds for TREC license discipline against your agent.

Cost: $0

The buyer's lender will hire a licensed appraiser to value your home. You need to allow the appraiser access to every room, the attic, and the exterior of the property. Make sure the home is tidy and accessible. The appraisal is ordered and paid for by the buyer. You will not receive a copy of the report unless the buyer shares it with you.

Cost: $0

If the appraised value comes in below the contract price, the lender will usually only approve a loan up to the appraised value. You then have a few options: reduce the sales price to match the appraised value, ask the buyer to make up the difference in cash, meet in the middle with a price reduction and the buyer covering the gap, or let the buyer terminate if the contract includes an appraisal contingency. Your agent will help you negotiate based on what the contract allows.

Cost: $0

The TREC contract includes a third-party financing condition with a specific deadline by which the buyer must notify you if they cannot get approved for a loan. If the buyer fails to get approved and properly notifies you by that deadline, they can terminate and recover their earnest money. If the deadline passes without notification, the buyer may lose the financing contingency protection. Your agent will track this deadline for you.

Cost: $0

If you agreed to repair items as part of the inspection negotiation, use licensed contractors and keep all receipts. The buyer's agent may request documentation that repairs were completed, and the buyer has the right to do a final walk-through before closing. Repairs should be done before that walk-through, not after. Failing to complete agreed repairs can give the buyer grounds to delay or terminate.

Cost: varies

The title company will prepare a closing disclosure or settlement statement showing your proceeds after paying off your mortgage, real estate commissions, title fees, taxes, and any other agreed credits. Review every line carefully before closing day. If you see an error—wrong payoff amount, unexpected fees—contact the title company immediately to correct it. You are entitled to see this document before you arrive at the closing table.

Cost: $0

The title company orders a payoff statement from your lender showing the exact amount needed to pay off your mortgage through the expected closing date. If you have any other liens on the property—home equity loans, contractor liens, judgment liens—the title company's search will find them and they must be paid at closing. Unexpected liens can delay closing, so contact the title company immediately if you know of any liens not on the title report.

Cost: $0

Just before closing—typically 24 to 48 hours ahead—the buyer has the right to do a final walk-through to confirm the property is in the same condition as when they made the offer and that agreed repairs have been completed. The home should be broom-clean, all personal property you are keeping should be removed, and all fixtures and appliances included in the sale should remain. If the buyer finds problems during the walk-through, they may request a delay or a credit.

Cost: $0

Coordinate your move-out so you are fully out of the property by the time keys are handed over at closing or as agreed in the contract. Schedule cancellation or transfer of utilities—electricity, gas, water, internet—for the closing date or the agreed possession date. Leave behind all garage door openers, keys, mailbox keys, gate codes, and any manuals or warranties for appliances staying with the home.

Cost: varies

At the title company, you will sign the deed conveying the property to the buyer, plus a settlement statement and any other required documents. If the home is your homestead and you are married, your spouse must also sign the deed regardless of whose name is on title—this is required by Texas Property Code Section 5.001 and cannot be skipped. Bring a government-issued photo ID. In Texas, sellers and buyers often sign at separate appointments.

Cost: $0

After all parties sign, the title company sends the deed to the county clerk's office for recording. In Texas, funds are typically not disbursed until the deed is actually recorded—this is called a 'dry close' for you until recording occurs. Once recorded (often same day or the next business day), the title company wires your net proceeds to your bank account. Keep the wiring instructions secure and confirm them directly with the title company to avoid wire fraud.

Cost: $0

As a seller in Texas, your closing costs are deducted from your sale proceeds before you receive the net check. Typical seller costs include the listing agent's commission (as agreed in your listing agreement), title insurance for the owner's policy (customarily paid by the seller in Texas, though negotiable), any prorated property taxes, HOA assessments owed, and recording fees. Review the settlement statement line by line to confirm every deduction matches what you agreed to.

Cost: 2-6% of sale price typical (commission + title + taxes)

Unless the contract specifies a different possession date, possession transfers at funding—when the title company confirms the deed has been recorded and funds disbursed. Have all keys, garage door openers, gate access codes, and mailbox keys ready to hand over to the buyer or their agent at that time. If you negotiated a seller leaseback to stay in the home after closing, that agreement should be documented in a separate signed addendum.

Cost: $0

Keep a complete copy of your closing package, including the signed deed, settlement statement, title commitment, and any repair amendments or addenda. You will need the settlement statement when you file your federal income taxes—it documents your sale price and closing costs, which affect your capital gains calculation. Texas has no state income tax, so there is no state return to file. Store these documents securely for at least seven years.

Cost: $0