Definition:
Closing, also known as settlement, is the final step in a real estate transaction when property ownership officially transfers from seller to buyer.

Example:
After agreeing on a purchase price, Mia and Alex schedule their closing. At this meeting, both sign legal documents, Mia receives payment, Alex gets the keys, and ownership officially transfers from Mia to Alex.

Explanation:
Closing finalizes a real estate deal. It typically involves signing legal documents like the deed, mortgage note, and disclosures. Buyers typically pay closing costs, which include lender fees, title insurance, taxes, and escrow fees. Sellers transfer ownership and receive sale proceeds after satisfying outstanding mortgages and obligations.

A closing agent—often an escrow officer, title agent, or attorney—oversees document signing, ensures funds transfer properly, and records the transaction with local government offices.

Importance:
Understanding the closing process is critical because it's when buyers officially take ownership, becoming legally responsible for the property. Buyers should carefully review and verify documents to ensure accurate details. Sellers need clarity about timing, funds distribution, and property handover. Smooth closings depend on clear communication, accurate paperwork, and preparation by both parties.

In short, the closing process finalizes real estate transactions securely and legally, making careful preparation and understanding essential for buyers and sellers alike.