What occurs during the closing and settlement phase of a real estate transaction?

During the closing and settlement phase of a real estate transaction, the final exchange where title and documents are executed is a crucial process. This phase signifies the culmination of the transaction, where the buyer and seller formally complete the agreement they have been working towards. During closing, the title is transferred from the seller to the buyer, and all necessary documents, including the deed, loan agreements, and settlement statements, are signed. This is when funds are disbursed, and any closing costs or fees are settled. It is a legally binding event that officially marks the change of ownership of the property.

Other activities, such as negotiating the sale price, arranging mortgage financing, and assessing property value, typically take place earlier in the transaction process and are not part of the closing and settlement phase. At this stage, the focus is on finalizing the details and ensuring that all legal formalities are completed to successfully transfer the property from one party to another.