At what point is transfer of title deemed to occur in a real estate closing?

In a real estate closing, the transfer of title is considered to occur at the moment the seller signs the warranty deed. This action signifies the seller’s intent to convey ownership to the buyer, establishing the legal transfer of that property.

While it might seem logical to think that other processes, such as recording the deed or financial transactions, could represent the actual transfer, they are secondary events that follow the signing of the warranty deed. Recording the deed, for example, is essential for public notice but does not impact the legal transfer of title between the buyer and seller; it merely serves to protect the buyer's interest by making it known to the public that the property has changed hands. Similarly, the payment of closing invoices or the presentation of the seller’s proceeds check involve financial management and do not influence the legal ownership transfer.

Therefore, the correct understanding of title transfer revolves around the signing of the warranty deed by the seller, solidifying the transaction and effecting the transfer of ownership rights to the buyer at that moment.