The closing is the formal process where both the buyers and sellers sign all of the required paperwork, money is exchanged, and title is transferred to the buyer. The closing typically takes an hour to go over all the documents.
From the purchase price of the property, the closer will subtract the amount of your mortgage payoff, taxes and any other transaction costs to determine your net proceeds. The deed transferring title as well as the loan documents will be filed with the clerk and recorder and the title company will submit your mortgage payoff to your mortgage company. See the closing costs section for more info on this site.