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

In real estate transactions, "closing" is a critical phase that denotes the final step in the process, where ownership of the property is officially transferred from the seller to the buyer. This is a formal event that usually involves the signing of various documents, the completion of financial transactions, and the disbursement of funds. During closing, important legal documents, such as the deed of trust and the title transfer documentation, are executed, ensuring that the buyer receives clear title to the property.

The closing process also includes the settling of any agreed-upon costs, escrows, and the final walkthrough to ensure the property is in the agreed-upon condition. This term signifies the culmination of efforts from both parties, their agents, lenders, and possibly attorneys, leading to the actual transfer of ownership rights.

Other options reflect steps or aspects that occur before or outside of the closing process, such as making an initial offer, reviewing contracts, or signing lease agreements, but they do not encapsulate the essence of "closing" as understood in real estate transactions.