What does the term "closing" refer to in real estate?

The term "closing" in real estate specifically refers to the final step in the transaction process where the ownership of the property is officially transferred from the seller to the buyer. During closing, all necessary legal documents are executed, and funds are exchanged, which solidifies the legal transfer of the property. This stage often involves a closing agent or attorney who ensures that all aspects of the transaction are completed properly, including the verification of title, settlement of any outstanding liens, and the disbursement of funds to the appropriate parties.

In contrast, showcasing a property, listing it for sale, or engaging in the initial promotional phase are all activities that precede the closing. These actions focus on marketing and preparing the property for sale rather than the culmination of the transaction itself. Thus, identifying closing as the point of ownership transfer accurately encapsulates the essence of this critical phase in real estate transactions.