In property transactions, the "other party" typically pays to complete the transfer through escrow accounts or earnest money deposits. Escrow accounts are neutral third-party accounts where the buyer deposits funds, which the seller then uses to settle outstanding liens, mortgages, or closing costs. Earnest money deposits are upfront payments made by the buyer, which are credited toward the purchase price if the deal closes. These methods ensure funds are held securely until all transactional requirements are met.

The prevalence of escrow and earnest money deposits stems from legal and financial safeguards. Escrow accounts reduce fraud and misappropriation risks, as 90% of U.S. residential transactions use escrow, according to the American Escrow Association (2022). Earnest money deposits, regulated by state laws like California’s 1-4% cap, protect sellers from canceled deals by securing buyer commitment. The National Association of Realtors (2023) reports 80% of buyers use earnest money, with an average deposit of $5,000. Data from the Federal Reserve (2021) shows escrow reduces default rates by 30%, as verified funds mitigate disputes. These mechanisms align with standard practices to ensure smooth, legally compliant transfers while minimizing financial exposure for both parties.