Final answer:
A mortgage is a type of real estate contract that both transfers property and finances its purchase, and is typically secured by the property itself. An escrow account can manage taxes and insurance payments alongside the mortgage.
Step-by-step explanation:
The kind of real estate contract that serves both as an instrument for transferring property and as the instrument for financing the purchase of property is often referred to as a mortgage. This type of contract is generally secured by the property itself, which means that the lender has the right to take the property if the borrower fails to repay the loan. The mortgage document serves both to affirm the transfer of ownership to the buyer and to outline the terms of financing provided by the lender.
Additionally, an escrow account may be set up in conjunction with a mortgage, which handles payments for property taxes and homeowner's insurance as part of the monthly payment, simplifying the process for the homeowner.