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

The term "closing" in real estate transactions specifically refers to the final step where the ownership of the property is officially transferred from the seller to the buyer. This process involves the signing of various documents, which may include the deed, loan documents, and other agreements necessary to complete the transaction. During closing, the buyer fulfills their financial obligations (such as paying the purchase price and any closing costs), and the seller transfers the title to the buyer. This step is crucial as it marks the completion of the sale, ensuring that the buyer receives legal ownership of the property and allowing them to exercise all rights associated with ownership.

In contrast, other choices describe different stages or elements of the home-buying process, such as making an initial offer or negotiating price, but they do not encapsulate the comprehensive nature of the closing process where all agreements culminate into the transfer of property. Similarly, reviewing property condition is a preliminary step that typically occurs during inspections and before the agreement to close is reached, rather than during the actual closing.