Final answer:
An escrow closing is where a neutral third party holds the funds for a property transaction, allowing the buyer and seller to not have to meet. This escrow account can also manage the payment for home insurance and property taxes.
Step-by-step explanation:
The type of closing where funds are held by a neutral third party and the buyer and seller may never meet is known as an escrow closing. During an escrow closing, an escrow agent will hold onto the funds and manage the transfer of property and documents. This process ensures that the buyer's funds are used to pay for their new home, and simultaneously, the seller receives the payment for the property. Furthermore, the escrow account can also be used after the purchase to manage the payment of ongoing expenses like home insurance and property taxes, which are included in the homeowner's monthly payment.