What term refers to the settlement of a real estate transaction?

The correct terminology for the settlement of a real estate transaction is "closing." In the context of real estate, "closing" refers to the final step in the transaction process where the title to the property is transferred from the seller to the buyer, and the necessary financial and legal documents are exchanged and recorded.

During closing, all involved parties—such as the buyer, seller, real estate agents, and often attorneys—come together to finalize the deal. This process includes signing the mortgage documents, transferring funds (payments), and officially recording the new ownership with the appropriate government office.

While "settlement" is often used interchangeably with closing in some regions, "closing" is the more precise term used to describe the series of events culminating in the transfer of property ownership. "Escrow" refers to the period during which a third party holds assets or documents until specific conditions are met, which is a different phase of the transaction. Lastly, "final inspection" relates to a last check of the property before closing, ensuring there are no issues left unresolved, but it is not synonymous with the overall process of finalizing the real estate transaction.