Final answer:
A title insurance policy protects a homebuyer from undisclosed changes in the property title, not excluded by the purchase agreement. Escrow is also used in property transactions to manage home insurance and tax payments. Warranties or service contracts may be offered by sellers for additional buyer protection.
Step-by-step explanation:
The question pertains to the title insurance policy, which is an essential aspect of real estate transactions. A title insurance policy provides protection to the homebuyer against any undisclosed changes in the recorded title that might be made by the seller, so long as these changes are not excluded by the terms of the purchase agreement. When acquiring a property, it's important to understand that such a policy can offer peace of mind by ensuring the buyer's legal claim to the property is secure.
In general, real estate transactions may also involve the use of an escrow account. This can simplify the payment of ongoing property expenses such as home insurance and property taxes, which become part of the homebuyer's regular monthly payment. Additionally, sellers might provide warranties or service contracts for repairs or maintenance, adding another layer of buyer protection, especially when it comes to large purchases like houses, cars, or appliances.