What does settlement refer to in real estate?

Settlement in real estate specifically refers to the final step in the transaction process. This stage is where the agreement between the buyer and seller culminates, and various activities take place to formalize the transfer of ownership. During settlement, necessary documents are signed, funds are exchanged, and the title is transferred from the seller to the buyer. It is the point at which both parties fulfill their obligations as outlined in the purchase agreement, making it a critical moment in the real estate transaction.

The other options relate to different aspects of the real estate process. Negotiation and acceptance of an offer are preliminary steps that occur before the actual settlement, while the inspection of property conditions is an evaluation phase that typically takes place prior to agreement on the terms of sale. Each of these steps is essential in the broader context of buying and selling property, but settlement stands out as the concluding phase, effectively marking the completion of the transaction.