What is the meaning of "Settlement" in the context of real estate transactions?

In real estate transactions, "Settlement" refers specifically to the process of finalizing the sale of a property. This stage involves the delivery of all necessary documents and funds to complete the transaction. During settlement, the buyer typically pays the purchase price, and in return, the seller transfers the title of the property to the buyer. Additionally, various closing documents, such as the deed and mortgage documents, are signed and exchanged at this point.

By understanding that settlement is the concluding step when all legal obligations are fulfilled and ownership is officially transferred, one can appreciate its critical role in real estate transactions. The other options do not accurately capture the essence of settlement; for example, while the initial agreement and signatures are important parts of the transaction, they occur before the actual settlement takes place. The beginning phase of a property sale involves negotiations and marketing that precede settlement entirely.