Real estate
Residential closing process in Texas, step by step
Updated August 25, 2026
Most Texas home sales follow the same path from signed contract to keys. This page walks through a typical financed resale; a cash purchase skips the loan steps and usually closes faster. Texas doesn't require an attorney at a residential closing, and title companies conduct most closings. Buyers and sellers hire attorneys to review documents and explain their rights along the way.
1. The executed contract
Most resale homes are sold using the Texas Real Estate Commission (TREC) One to Four Family Residential Contract (Resale). The contract's effective date, the date of final acceptance, starts the clock on nearly every deadline that follows. Keep a copy of the fully signed contract and all addenda.
2. Earnest money and option fee
Within 3 days after the effective date, the buyer delivers the earnest money and the option fee to the escrow agent named in the contract, usually the title company. Both are typically credited to the buyer if the sale closes. Missing this deadline can cost the buyer important rights, including the right to terminate during the option period.
3. The option period
In exchange for the option fee, the buyer gets an unrestricted right to terminate the contract by giving written notice before 5:00 p.m. local time on the last day of the option period. The length of the period is negotiated. Buyers typically use this time for inspections, repair negotiations, and reviewing HOA documents. If the buyer terminates in time, the earnest money is refunded, but the option fee is not.
4. Financing and appraisal
The buyer applies for the loan right away. Under the Third Party Financing Addendum, if the buyer can't obtain loan approval within the number of days stated, the buyer may terminate by notice and receive the earnest money back. The lender orders an appraisal, and some contracts include an addendum that affects what happens if the appraisal comes in below the sales price.
5. Title commitment and survey
The seller furnishes a title commitment within 20 days after the title company receives the contract. The contract also addresses the survey, often an existing survey with a T-47 affidavit or a new survey. The buyer may object to title or survey problems within the time the contract allows. If the seller doesn't cure a proper objection, the buyer may terminate and receive the earnest money back. See Title commitment: how to read it.
6. Disclosures and HOA documents
For most resale homes, the seller provides a Seller's Disclosure Notice describing the property's known condition. Homes built before 1978 also require a federal lead-based paint disclosure. If the home is in a mandatory homeowners' association, an HOA addendum governs delivery of the subdivision information, such as the restrictions, bylaws, and resale certificate, and may give the buyer a right to terminate after reviewing it.
7. Closing Disclosure and final numbers
For most mortgage loans, the lender must deliver the Closing Disclosure at least 3 business days before closing, showing the loan terms and the buyer's cash to close. The title company prepares a settlement statement for the seller. Review both carefully and ask about anything unexpected.
Before wiring funds, call the title company at a phone number you've verified yourself. Never follow wiring instructions from an email alone.
8. Final walkthrough
Shortly before closing, the buyer walks through the home to confirm its condition and that any agreed repairs are complete.
9. Signing
Buyer and seller usually sign at the title company, often at separate times. The buyer signs the loan documents, including the note and deed of trust. The seller signs the deed and the settlement statement. Bring a government-issued photo ID. If the home is the seller's homestead, the seller's spouse may need to sign even if they aren't on the title. Some title companies offer mobile or remote signings, so ask early.
10. Funding, recording, and possession
After signing, the lender funds the loan, often the same day. The title company then pays off the seller's mortgage, pays the costs of sale, and sends the seller's proceeds. The deed and deed of trust are recorded with the county clerk. Under the standard contract, the buyer typically receives possession on closing and funding, unless a temporary lease says otherwise. The owner's title policy usually arrives several weeks later.
After moving in, buyers can apply for a residence homestead exemption with their county appraisal district.
Where we fit
Our buyer and seller closing packages cover contract review, title commitment review, closing document review, and attendance at closing.
This is general information, not legal advice.