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

The term "closing" in real estate specifically refers to the final step in a transaction where ownership of the property is officially transferred from the seller to the buyer. This process typically involves the signing of various legal documents, the payment of funds, and the recording of the transaction in public records. At closing, all agreed-upon conditions have been satisfied, and the buyer receives the title to the property. This step is crucial as it marks the culmination of the negotiation process and ensures that the buyer has legal rights to the property they've purchased.

In contrast, other activities such as property inspections, signing leases, or listing properties do not represent the actual transfer of ownership and therefore do not define the closing process. Closing is a definitive point in the real estate transaction timeline, distinguishing it from preceding or unrelated actions.