Final answer:
The main answer is C) Escrow Agreement, which is a legal arrangement involving a neutral third party to hold funds or assets until the transaction obligations are fulfilled by both parties in a property sale, ensuring a smooth transfer of ownership.
Step-by-step explanation:
The answer to the question 'This allows the buyer to legally possess the property once all terms and conditions have been satisfied' is C) Escrow Agreement. An escrow agreement involves a third party, known as an escrow agent, who holds an asset or funds before they are transferred from one party to another. The third party holds the funds until both the buyer and seller fulfill the requirements of the agreement. In real estate, the escrow agent may also handle payments for home insurance and property taxes, simplifying the process for the homeowner by including these expenses in their normal monthly payment.Being in escrow means that the money is held by a third party to ensure that the buyer and seller meet all the terms and conditions of the sale. It is not the deed itself that gives the buyer the legal right to possess the property—instead, it is the ultimate closing of the sale and the transfer of ownership that does so. Escrow is a key part of this process, protecting both parties until all contractual obligations are met and ownership can legally change hands.