Final answer:
The entity that holds the deed to a home until the final payment is usually an escrow agent, not the buyer or seller. This agent also often manages the payment of home insurance and property taxes through the monthly mortgage payment.
Step-by-step explanation:
When buying a home, the entity that holds the deed to the home until final payment is typically the lender or a third party such as an escrow company rather than the buyer or seller. As part of the escrow arrangement, this neutral third party holds onto the deed and makes sure that the property title is transferred to the buyer only after all of the terms of the sale are met, which includes full payment of the purchase price.
The escrow agent also facilitates the payment of home insurance and property taxes, which are often included in the homebuyer's monthly mortgage payment, providing convenience and ensuring that these important bills are paid on time.