What does closing refer to in real estate transactions?

Closing in real estate transactions refers specifically to the final meeting where all relevant documents are signed, and the agreed-upon funds are exchanged between the parties involved, typically the buyer and the seller. During this critical event, various legal documents are executed, including the deed, loan documents, and potentially other agreements or disclosures required by state or federal law.

This meeting marks the culmination of the transaction process, transforming the agreement into a legally binding reality where ownership of the property officially transfers from the seller to the buyer. It is at this point that the buyer provides the necessary funds, often through a lender, and the seller hands over possession of the property, thereby completing the sale.

The other options describe different aspects of real estate activity but do not encapsulate what closing entails. Listing a property for sale is an earlier step in the sales process, transferring deeds is part of the closing but does not cover the entire event, and obtaining financing is a prerequisite that typically occurs before the closing meeting.