What does closing typically involve in a real estate transaction?

Closing in a real estate transaction refers to the final step where ownership of the property is officially transferred from the seller to the buyer. This process typically involves the signing of several legal documents, including the deed, closing statement, and possibly the mortgage documents if financing is involved. During this stage, funds are also transferred, ensuring that payments are made to the seller, real estate agents, and any other parties owed money.

The signing of legal documents is crucial as it confirms the various terms and conditions of the sale agreed upon by both parties, making them binding. This step is essential for ensuring that legal ownership is established in the public records, which is necessary to protect both the buyer and the seller's interests after the transaction is completed.

While aspects such as reviewing inspection reports, finalizing mortgage applications, and negotiating price adjustments are significant parts of the real estate process, they typically occur before the actual closing takes place. Thus, they do not form part of the closing itself. The closing is specifically focused on finalizing the transaction and legally transferring ownership.