Definition: The final step in a real estate transaction where ownership is legally transferred from the seller to the buyer.
Explanation: Closing is the point at which the property officially changes hands. During this process, all financial obligations, including down payments, loan disbursements, and closing costs, are settled. The buyer signs mortgage documents, the seller transfers the deed, and legal ownership is recorded with the local government. Once closing is complete, the buyer receives the keys to the property.
Example: After finalizing all loan paperwork, a buyer meets with their agent, lender, and title company to complete the closing. The lender transfers the mortgage funds, and the buyer receives the deed and keys to their new home.