Most people think closing is when they sign their closing documents. In our state, and in many states, that's not how it works. Closing is when escrow can make the sellers funds available to them and the ownership rights available to the new buyer.
Have all the terms of the purchase and sale agreement been met, the escrow instructions met, all contingencies and conditions met, and the deed has been recorded, and are the sellers funds available? That's closing.
Escrow is a "disinterested third party" who is supposed to gather the buyers money, and the sellers deed, and transfer the one for the other once all parties have confirmed all is agreed upon. They play a key role in the closing.
Another key party in most transactions is the lender. The lender won't release their loan to the borrower, which becomes the borrower/buyers funds to purchase, until they've had a chance to review the signed loan documents. In a cash transaction, closing can't take place until the sellers signed deed to the buyer has gone to the county for recording. So, it's impossible for "signing" to be the time of "closing".
Closing is usually a day or two after all parties have signed closing documents. Closing is when the funds are available to the seller and the deed is recorded for the buyer.
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