Final answer:
The title remains with the seller until the buyer pays off all the monthly installments. Escrow can handle regular payments for home insurance and property taxes as part of the homeowner's monthly payment.
Step-by-step explanation:
When purchasing something through an installment plan, like a home, the seller usually retains title or ownership until the buyer fulfills all monthly payments. Upon completion of payments, the title is transferred to the buyer, signifying full ownership. The concept of escrow, involving a neutral third party holding funds or assets until specific conditions are met, is relevant in such transactions.
In real estate, an escrow account may be established to hold funds for property-related expenses like insurance and taxes, streamlining the payment process for homeowners. This ensures that these obligations are met, providing financial security for both parties. Escrow adds a layer of security and impartiality to transactions, facilitating a smooth process and protecting the interests of both buyers and sellers in complex financial arrangements such as home purchases.