Final answer:
An executory contract is a binding agreement between a buyer and seller for the sale of a property, where terms are agreed upon but the transaction is not yet completed.
The concept of escrow is often associated with real estate transactions to facilitate the inclusion of property taxes and home insurance in regular payments.
Step-by-step explanation:
The contract for the sale of the property described by Owner A and Buyer B is an executory contract. This type of contract is one where the terms are set and agreed upon, but the full performance has not yet been completed.
In real estate, this involves an agreement on price, deed type, and a set closing date; however, the actual exchange of the title for payment has not yet occurred.
It's important to understand that this contract is legally binding and details the obligations that both parties have agreed to fulfill.
Additionally, the concept of escrow is often involved in real estate transactions. The escrow service acts as a neutral third party to hold funds and ensure that property taxes and home insurance.