closing

settlement

Another term for closing, the final step of a real estate transaction in which documents are signed, funds are disbursed, and title is transferred from seller to buyer. Depending on local custom, settlement may happen at a closing table with the parties present or through an escrow agent who completes the steps separately. Practices vary by state.

Exam tip: Settlement, closing, and (in some regions) close of escrow are used interchangeably. RESPA governs settlement procedures for most residential mortgage loans.
Example: At settlement, the buyer signs the loan documents, the seller signs the deed, and the settlement agent wires the seller's proceeds.

1. After the 2024 NAR settlement practice changes, a buyer wants to tour homes with an MLS participant. What is generally required first?

Answer & explanation

Answer: D. The settlement practice changes require MLS participants working with buyers to sign a written agreement before touring, with an objectively ascertainable compensation amount. Pre-approval and seller-paid commission arrangements do not satisfy the requirement.

Related terms & state variants

closing closing statement escrow RESPA

Sources

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Last verified: 2026-10-23