Washington State Real Estate Practice Exam

What typically occurs during a real estate closing?

1. Final documentation is signed, and funds are exchanged

2. Only the buyer is required to attend

3. Property inspections are completed

4. Buyers are shown the property for the last time

The correct answer is: Final documentation is signed, and funds are exchanged

During a real estate closing, the significant and definitive actions involve the signing of final documentation and the exchange of funds between the parties involved in the transaction. This process culminates in the transfer of ownership from the seller to the buyer, where closing documents like the deed, mortgage, and any necessary disclosures are finalized and executed. The transfer of funds at closing generally includes the buyer paying the purchase price, along with any closing costs, and the seller receiving the proceeds of the sale. This process ensures that all legal and financial obligations are satisfied, paving the way for a smooth transfer of property ownership. The other options are not typical for the closing process. It is common for both the buyer and the seller to attend the closing to finalize the transaction, as both parties must agree to the terms and understand the documents being signed. Property inspections are generally done prior to closing, not during it, to ensure that the buyer is satisfied with the condition of the property. Lastly, buyers are usually shown the property prior to the closing, often during a final walkthrough, but it's not a formal part of the closing itself. Thus, the signing of documents and the exchange of funds characterizes the essence of what takes place during a closing in real estate transactions.