When someone gets a mortgage to buy a house does the mortgage company give the seller a lump sum of the purchase price? Or does the seller get monthly payments from the mortgage company?
What usually happens is the the buyer will arrange a mortgage, and provide the details to his lawyer. The conveyancing lawyer will then set a date with the seller's conveyancing lawyer and carry out any check required by the mortgage provider and request funds from the provider.
On the date of completion the buyer's lawyer will usually transfer all the agreed sales price to the seller's conveyancing lawyer and the deeds will be transferred over.
The typical home purchase uses an escrow. This is an account, managed by an agent, that holds the money used to buy the house.
The buyer, the buyer's mortgage provider, and anyone or anything else contributing to the sale pay into the escrow account. The sale does not occur until the escrow account holds whatever remains of the sale amount (less the deposit or any other payments or credits).
When the sale completes, the escrow agent makes payments to whoever is supposed to get the proceeds of the sale. This could be any holders of existing mortgages or liens on the property. The remainder typically goes to the seller in some convenient form such as an ACH transfer.