Closing, also called settlement or close of escrow, is the final stage of a real estate transaction when ownership officially transfers from the seller to the buyer. At this point, all documents are signed, funds are disbursed, and the deed is recorded with the local government.
At or before closing, the buyer signs loan documents and the deed is delivered, the buyer's funds and mortgage proceeds are paid to the seller, and closing costs are settled. A settlement statement details every credit and charge for both sides.
Depending on the state, closings are handled by title companies, escrow companies, or attorneys. Once the transaction is recorded and funded, the buyer typically receives the keys and takes possession according to the terms of the contract.