What does "Closing" refer to in real estate transactions?

In real estate transactions, "closing" refers to the final step in the home-buying process where ownership is officially transferred from the seller to the buyer. This event typically involves a meeting where all necessary paperwork is signed, funding is secured, and the title of the property is handed over. During this process, various important documents are executed, such as the deed, the mortgage agreement, and closing statements. Closing is crucial because it finalizes the transaction, allowing the buyer to take possession of the property and the seller to receive payment. It signifies the completion of the contract and the start of a new ownership. This stage is pivotal in ensuring that both parties fulfill their obligations and that the transfer of property rights is legally documented and recognized.