Final answer:
The correct option for the closing process described, where the seller and the buyer sign documents separately and might not meet, is an escrow closing(option b). In this process, a neutral third party manages the transaction, including payment of taxes and insurance.
Step-by-step explanation:
The question describes a situation where the seller signs the closing documents first and separately from the buyer, who signs next, without necessarily meeting the seller. This description fits the definition of an escrow closing. In an escrow closing, a neutral third party, known as an escrow agent, facilitates the transfer of property by holding onto funds and documents until both the buyer and seller fulfill their respective obligations.
The escrow process ensures that the seller gets paid and the buyer receives the property title upon the closing of the transaction. Furthermore, escrow accounts are often used to hold and manage funds for property taxes and homeowner's insurance, making it easier for the homeowner to manage these expenses as part of their regular mortgage payment.
What is escrow?
Escrow is a legal concept where money is deposited by one party into the custody of a neutral third party to be delivered to another party upon completion of a specific event or condition. This third party, or escrow agent, handles the payment of home insurance and property taxes, which are included in the homebuyer's monthly mortgage payment.