When does actual performance of a real estate contract take place?

• A. At signing the contract
• B. Upon recording deed
• C. At sale closing
• D. Upon delivery of possession

Answer: (C)

Actual performance happens at the closing. When you sign the contract, you’re entering into obligations, but ownership and payment aren’t transferred yet. At closing, the seller delivers a deed that conveys title, the buyer pays the purchase price, and possession (often) is transferred. Recording the deed is a matter of public notice and doesn’t itself transfer ownership, so it isn’t the moment of performance. Possession can be delivered at closing or later if the contract says so, but the fundamental completion of the contract—the exchange that fulfills it—occurs at closing.