What does the closing date in a purchase agreement refer to?

The closing date in a purchase agreement is significant because it marks the point at which the buyer officially takes ownership of the property and the transaction is finalized. This date is crucial for both the buyer and the seller as it is when all necessary documents are signed, the funds are exchanged, and the title is transferred.

On the closing date, both parties come together to settle any outstanding issues related to the sale, including final payments, property title conveyance, and fulfilling any conditions laid out in the purchase agreement. It represents the culmination of the buying process and embodies the formal transition of property rights.

In contrast, the other choices represent different aspects of a real estate transaction. The deadline for the buyer's earnest money deposit refers to an earlier stage in the process, as does the completion of inspections. The ending date of the listing agreement is a separate consideration related to the seller's agreement with their agent and does not indicate when the ownership changes hands.