American Land Title Association (ALTA) Practice Exam 2025 – Your Comprehensive All-in-One Guide to Success!

The closing process of a property sale primarily involves the signing of all legal documents necessary to finalize the transaction and the transferring of ownership from the seller to the buyer. This critical stage ensures that both parties fulfill their contractual obligations, and it often includes the execution of documents such as the deed, closing disclosure, and any mortgage documents.

In addition to signing documents, the closing process also typically involves the disbursement of funds, including the purchase price and any closing costs. This is the point at which the buyer officially becomes the property owner, receiving the keys and documentation that represent their new ownership rights. This process is crucial as it formally completes the real estate transaction and provides legal protection for both parties under the law.

The other options do not capture the essence of the closing process. Finalizing mortgage applications is part of the financing stage preceding closing. Conducting an inspection usually occurs before the closing to ensure the buyer is satisfied with the condition of the property. Meanwhile, negotiating sale prices is a preliminary activity that happens before the property is sold and finalized in the closing process.