What Is Closing in Real Estate?
In real estate, closing (also called settlement) is the final step in a property sale where ownership officially transfers from seller to buyer. During closing, all required documents are signed, funds are disbursed, and the deed is recorded with the county.
✅ What Happens at Closing
- Both parties sign the final loan and title documents.
- Funds are transferred to pay off existing mortgages and closing costs.
- The deed is delivered to the buyer and recorded publicly.
- Keys are exchanged, and ownership officially changes hands.
Essentially, closing is the finish line of the home-selling process — where all conditions are met and the transaction becomes final.
📄 Important Documents Signed at Closing
- Closing Disclosure — outlines loan terms and all costs.
- Promissory Note & Deed of Trust — bind the borrower to the lender.
- Settlement Statement & Title Documents — itemize all payments and ownership transfer.
- Proof of Identification and Final Signatures — confirm legal authority for all parties.
These documents ensure transparency and finalize the financial and legal side of the sale.
💰 Costs and Statuses Linked to Closing
The final amount due at closing includes prorated taxes, title fees, and loan costs. Understanding each charge helps avoid surprises.
- Learn who pays closing costs and what’s typically included.
- See how escrow differs from closing.
- Review the Closing Disclosure for all charges in detail.
🏡 Why Closing Matters for FSBO Sellers
Selling For Sale By Owner (FSBO) means you’ll coordinate directly with the title company or attorney for closing. Brokerless helps simplify the process by ensuring your MLS listing, buyer communications, and documents are aligned from start to finish.