What typically happens during the 'closing' process of a real estate transaction?

During the closing process of a real estate transaction, final documents are signed, and funds are exchanged. This is a crucial stage in the transaction where all parties come together—typically including the buyer, seller, agents, and possibly a representative from a title company or escrow service—to finalize the sale of the property.

At closing, several key documents are executed, such as the deed, which transfers ownership, and the mortgage paperwork, if applicable. Additionally, this is when the buyer pays the purchase price, often through a combination of down payment and financing. The closing statement, which outlines all costs and disbursements, is also reviewed and signed by all parties involved. Once everything is completed, the property officially changes hands, and the buyer typically receives the keys to the new property after all funds have been successfully transferred.

In this process, actions such as negotiating final terms, inspecting the property for damages, or transferring keys before closing occur at different times. Negotiations usually take place before reaching the closing table, inspections are part of the due diligence period that occurs prior to closing, and keys are typically handed over at the conclusion of the closing, ensuring all financial aspects have been settled.