Final answer:
In a real estate transaction, the seller generally pays the Owners' Title Policy premium to assure the buyer of a clean property title. Escrow services facilitate the payment of home insurance and property taxes as part of the buyer's monthly mortgage payment.
Step-by-step explanation:
In a sales transaction, the party generally responsible for paying the premium for the Owners' Title Policy can vary based on local customs and agreements made during the sale.
However, typically, it is the seller who pays for this expense. This policy serves to protect the new owner from any unforeseen issues that might affect the title of the property, such as undiscovered liens or disputes regarding property ownership.
The concept of Escrow is also integral in real estate transactions, acting as a neutral third party that holds onto funds and disburses them at the right time, ensuring that expenses such as home insurance and property taxes are managed efficiently.
This simplifies the process for the homebuyer, who makes a normal monthly payment that covers these costs alongside their mortgage.