What does the term "settlement" refer to in real estate?

The term "settlement" in real estate refers specifically to the process of finalizing the transfer of property ownership. This is the stage in a real estate transaction where all necessary documents are signed, funds are transferred, and the title is officially recorded. During settlement, the buyer receives the keys to the property, and the seller receives payment, thereby completing the sale and formally transferring ownership.

This occurs after all conditions of the purchase agreement have been met and is crucial as it ensures that both parties have fulfilled their obligations as outlined in the contract. Understanding this term is fundamental for anyone involved in real estate transactions, as it marks the culmination of the buying and selling process.