Final answer:
In real estate transactions, the transfer of title from the seller to the buyer is officially completed when the deed is delivered and accepted. This crucial document is essential for proving ownership and is often managed through escrow services to ensure security during the transfer.
Step-by-step explanation:
In a real estate transaction, transfer of title from the seller to the buyer is a key moment. It does not occur upon the occupancy of the property by the buyer, nor does it happen merely through the exchange of money between the buyer and the seller. Similarly, it does not take place with just the signing of an agreement of sale by both parties. Instead, the transfer of title is finalized at the time of delivery and acceptance of the deed. This official document serves as evidence of the transfer of ownership of the property. The deed must be delivered by the seller and accepted by the buyer for the transaction to be considered complete.
Escrow services are often used in real estate transactions to manage the exchange of money and documents, ensuring a secure transfer. Moreover, having a clear property title is essential for the transaction, which must include accurate details of the property such as its dimensions and acreage. Once a property is officially owned, it grants the owner the right to enter contracts regarding the use or sale of the property. Legal systems reinforce the fulfillment of contracts to facilitate economic activity and property transactions.