It amazes me how many sellers think they can just get a contract on their house, show up to closing, and get the amount of the sales price at closing. Many sellers don't understand that they have their own closing costs, just like a buyer.
Sellers don't just pay a commission to sell their house. Sellers also have to credit the buyer the taxes on the property from Jan 1 through the day of closing. When towards the beginning of the year, this number is small. Towards the end of the year, this number gets bigger and bigger. Also, you will be buying a tax certificate that ensures all taxes are current and up to date.
I've never seen a contract written where the seller doesn't buy the Title Policy for the buyer to ensure a clear title transfer over to the buyer. This is just tradition in the Dallas area. When you have a current mortgage, your current lender requires money to release the lien and complete their paperwork.
There are also recording fees for the county to record the change of title. You mustn't (Texas for must not) forget the $1 that goes to the state of Texas for every buyer and seller. There are escrow fees for the title company just for them to get all the paperwork done.
All the fees above don't even include fees that you might have to pay if the buyer is obtaining a Government loan! Seller a house isn't cheap, so ask questions!
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