What typically happens during a closing in a real estate transaction?

During a closing in a real estate transaction, several important actions take place, primarily revolving around the transfer of ownership from the seller to the buyer. The buyer typically takes possession of the property at this time, which signifies the completion of the sale. This is a significant moment as it marks the handover of rights and responsibilities related to the property.

In addition to the buyer taking possession, the seller receives payment for the property. This is typically done through the transfer of funds from the buyer or their lender to the seller, concluding the financial aspect of the transaction. Both of these actions are essential components of the closing process, as they finalize the agreement made during the negotiation phases.

The combination of the buyer taking possession and the seller receiving payment encapsulates the essence of what a closing entails in real estate transactions, making the inclusion of both events in the correct answer vital to understanding the process.