At closing, which statement is true?

At closing, which statement is true?

• A. The seller retains title
• B. The buyer receives title to the property
• C. Title transfers only after recording
• D. The title is not transferred until mortgage is paid

Answer: (B)

Ownership passes at closing. At this moment the seller delivers the deed to the buyer and the buyer accepts it, which transfers title to the property. Recording in the public records is simply notice to third parties; it does not create or verify the transfer of ownership. The mortgage being paid is part of the closing funds, but a paid-off mortgage is not the trigger for transferring title—the deed already conveys ownership when delivered. So the true statement is that the buyer receives title to the property at closing.

Ownership passes at closing. At this moment the seller delivers the deed to the buyer and the buyer accepts it, which transfers title to the property. Recording in the public records is simply notice to third parties; it does not create or verify the transfer of ownership. The mortgage being paid is part of the closing funds, but a paid-off mortgage is not the trigger for transferring title—the deed already conveys ownership when delivered. So the true statement is that the buyer receives title to the property at closing.