§ 1057 Escrow Grant Conditions

This law explains how a grant can be placed with a third party to be given only when a certain condition is met, and that this arrangement is called an escrow.

Key Takeaways

•A grant can be handed to a third person to wait until a condition happens.
•The thing held by the third person is called an escrow.
•It only becomes effective when the third person delivers it after the condition is met.

Example

A homeowner gives $5,000 to a neutral friend, saying the friend should only give it to the buyer when the buyer finishes fixing the roof.

The $5,000 is held by the friend until the roof is fixed. Once the roof work is done, the friend delivers the money to the buyer. While the money is waiting, it is called an escrow.

A grant may be deposited by the grantor with a third person, to be delivered on performance of a condition, and, on delivery by the depositary, it will take effect. While in the possession of the third person, and subject to condition, it is called an escrow. (Enacted 1872.)

This law explains how a grant can be placed with a third party to be given only when a certain condition is met, and that this arrangement is called an escrow.

Key Takeaways

•A grant can be handed to a third person to wait until a condition happens.
•The thing held by the third person is called an escrow.
•It only becomes effective when the third person delivers it after the condition is met.

Example

A homeowner gives $5,000 to a neutral friend, saying the friend should only give it to the buyer when the buyer finishes fixing the roof.

The $5,000 is held by the friend until the roof is fixed. Once the roof work is done, the friend delivers the money to the buyer. While the money is waiting, it is called an escrow.

Key Takeaways

Example

Key Terms

References

§ 1057 Escrow Grant Conditions

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References