What does it mean for a real estate transaction to be 'closed'?

In real estate terminology, a transaction is considered 'closed' when all essential elements of the sale have been completed. This includes the signing of all necessary documents, such as the purchase agreement, mortgage documents, and title transfer paperwork. During this process, the ownership of the property formally shifts from the seller to the buyer, making it a critical part of the transaction.

While other aspects may be part of the closing process—like the buyer moving in, the collection of sale proceeds by the seller, or the release of loan funds from the lender—these actions do not, in themselves, define the closure of a transaction. The moment of 'closing' is specifically marked by the legal completion of the agreement and transfer of title, which is foundational to real estate purchases and sales.