What is meant by “real estate closing”?

The term “real estate closing” refers to the final step in a real estate transaction, where ownership of the property is officially transferred from the seller to the buyer. During this process, all necessary documents are signed, including the deed, mortgage agreements, and any other paperwork required to finalize the sale. This is a crucial moment as it marks the completion of the sale and the initiation of the buyer's ownership, along with the distribution of funds to the seller.

In contrast, other options describe different aspects of real estate transactions but do not relate to the closing process. For example, a preliminary agreement before the final sale does not finalize ownership and lacks the legal finality associated with a closing. An inspection process pertains to assessing the property's condition before purchase, serving a different purpose in ensuring the buyer is informed. The initial listing of the property for sale occurs long before a closing takes place, as it involves making the property available for prospective buyers rather than finalizing a transaction. Understanding these distinctions is essential for grasping the various phases involved in real estate transactions.