What is "closing" in a real estate transaction?

"Closing" in a real estate transaction refers specifically to the process of transferring title from the seller to the buyer and settling all financial obligations related to the sale. This final step typically involves various activities such as signing of all necessary documents, disbursing funds (including transferring the purchase price to the seller), paying off any existing mortgages on the property, and ensuring that all closing costs and fees are settled.

It is at closing that the buyer officially becomes the new owner of the property, receiving the deed and any relevant disclosures. The closing process is critical as it ensures that all parties meet their contractual obligations and protects the interests of both the buyer and seller in the transaction.

In contrast, while negotiating the sale price, conducting property inspections, and reviewing local zoning laws are important steps in the overall real estate transaction process, they do not encompass the formal transfer of ownership and financial closing that "closing" represents.