The settlement in real estate is also called “closing,” which is the final step of the transaction where both parties sign all needed documents and exchange all the final information. It is also when the money is transferred, and the loans become effective.
This step is called a settlement because everything "gets settled." The buyer finally gets the clear property title, which gives them complete ownership of the house.
It is essential to thoroughly read the conditions of the agreement, as after this step is done, there's no turning back unless the buyer finds themselves in an extreme circumstance.