Final answer:
An 'escrow closing' is the correct term for a real estate transaction where a neutral third party holds the funds until all conditions are met, and the buyer and seller do not meet face-to-face.
Step-by-step explanation:
When buyers and sellers engage in a real estate transaction without meeting face-to-face, the process often involves an escrow closing. An escrow is a financial arrangement where a neutral third party holds and regulates the payment of the funds required for two parties involved in a given transaction. It helps make transactions more secure by keeping the payment in a secure escrow account which is only released when all of the terms of an agreement are met as overseen by the escrow company.
Escrow is particularly important in real estate transactions to ensure that the buyer and seller are protected due to imperfect information and the potential for asymmetric information. In these cases, an escrow service can hold and manage the payment of funds for home insurance and property taxes, typically as part of a regular monthly payment, which simplifies the process for the homeowner. Thus, the correct answer to the question is option b. escrow closing, where transactions are closed with a neutral third party holding the funds, without a face-to-face meeting between the buyer and seller.