The real estate closing (aka. settlement) is the final step in executing a real estate transaction. This occurs when of the all parties involved in a real estate transaction meet to finalize the sale and purchase of real property.

In the case of a purchase, a closing usually involves the seller, the buyer and the lender. In the case of a refinance, the closing involves the borrower and the lender.

Several things happen during a real estate closing:

• The buyer (or lender) delivers the funds (generally a Cashier's check or wire transfer) for the balance owed on the purchase price.
• The seller signs the deed over to the buyer, and gives him the keys.
• A title company, real estate lawyer or civil law notary registers the new deed with the local land registry office.
• The seller receives the proceeds of the sale, less closing costs and mortgage payouts.