What does the term "closing" encompass in a real estate transaction?

The term "closing" in a real estate transaction specifically refers to the finalization of the sale, where ownership is officially transferred from the seller to the buyer. During this process, various legal documents are signed, funds are exchanged, and any necessary adjustments such as prorated taxes and fees are settled. It represents the culmination of all prior negotiations, inspections, and agreements that have taken place over the course of the transaction. Closing is a critical moment because it marks the point at which the buyer becomes the legal owner of the property and assumes all rights and responsibilities associated with it.

The other options do not accurately describe the closing process. The period before the listing agreement pertains to preparation and planning for the sale, the negotiation phase involves discussions and agreements between parties prior to closing, and marketing strategies focus on how the property will be promoted to potential buyers. None of these phases encompass the actual transfer of ownership that occurs at closing.