Define "closing" in a real estate transaction.

Closing in a real estate transaction refers to the final step where the title to the property is officially transferred from the seller to the buyer. This process typically involves various important actions, including the signing of documents, the payment of closing costs, and the disbursement of funds. It is a crucial phase that marks the culmination of the buying process, ensuring that the buyer acquires legal ownership of the property.

During closing, parties involved in the transaction—such as the buyer, seller, real estate agents, and often legal representatives—participate to ensure that all terms of the sale are met. Important documents, including the deed and loan agreements, are finalized, and any agreements regarding repairs or other considerations are officially ratified. Once this process is complete, the buyer receives the keys and can legally take possession of the property.

In contrast, negotiating terms pertains to earlier discussions before reaching an agreement. The initial meeting between the buyer and seller occurs much earlier in the process, and obtaining an appraisal is part of due diligence and financing, not part of the closing itself. The closing, therefore, is distinctly recognized as the final event marking the transfer of ownership.