According to North Carolina law, what should happen during closing?

The correct response focuses on the formal process that takes place during closing, particularly the critical act of transferring ownership in a real estate transaction. In North Carolina, the closing process culminates in the formal transfer of the property's title, which is accomplished through the recording of the deed. This is a vital step because it provides legal proof of ownership and protects the buyer's rights regarding the property. Once the deed is recorded, it signifies that the buyer has gained official ownership, and the legal description of the property is now associated with the new owner's name in public records.

The recording of the deed is not only a procedural formality; it is also a legal requirement that establishes the priority of claims against the property. This action is essential for ensuring that the buyer's interests are safeguarded against any future claims that may arise, such as those from creditors or other parties.

In contrast, the other options present scenarios that do not align with the standard practices or legal requirements during the closing phase. For instance, immediate possession by the buyer, liability for property taxes remaining with the seller, or a buyer's ability to cancel the transaction without penalty do not reflect the established norms during the transfer of property ownership in North Carolina.