Closing and escrow are crucial stages in a real estate transaction, representing the final steps before the property changes hands from the seller to the buyer.

Closing is the process of finalizing the sale of the property. It involves the buyer, seller, real estate agents, and often a closing agent or attorney coming together to sign all the necessary documents to transfer ownership of the property. During the closing, the buyer typically pays the remaining balance of the purchase price, and closing costs are settled.

Escrow is a process where a neutral third party holds onto funds or documents until certain conditions are met. In real estate, an escrow account is often set up to hold the buyer's earnest money deposit and the seller's deed to the property until all the terms of the sale have been met. The escrow agent, usually a title company or attorney, ensures that all conditions are satisfied before the funds are released and the deed is transferred.

Closing and escrow are critical to ensuring a smooth and legally compliant real estate transaction. They help protect both the buyer and seller by ensuring that all conditions of the sale are met before the property changes hands and funds are exchanged.