§ 17003 Escrow Transaction Definition

This law explains what 'escrow' means. It's when someone gives money or important papers to a third person to hold until something specific happens, like buying a house or selling something online.

Key Takeaways

•Escrow is like a safe middle person who holds money or important papers until a deal is done.
•It can be used for buying houses, cars, or even things online.
•The escrow person only gives the money or papers to the right person when everything is ready.

Example

Buying a house

When you buy a house, you might give your money to an escrow company. They hold it until all the papers are signed and everything is ready. Then they give the money to the seller.

(a) “Escrow” means any transaction in which one person, for the purpose of effecting the sale, transfer, encumbering, or leasing of real or personal property to another person, delivers any written instrument, money, evidence of title to real or personal property, or other thing of value to a third person to be held by that third person until the happening of a specified event or the performance of a prescribed condition, when it is then to be delivered by that third person to a grantee, grantor, promisee, promisor, obligee, obligor, bailee, bailor, or any agent or employee of any of the latter. (b) With regard to Internet escrow companies, “escrow” also includes any transaction in which one person, for the purpose of effecting the sale or transfer of personal property or services to another person, delivers money, or its Internet-authorized equivalent, to a third person to be held by that third person until the happening of a specified event or the performance of a prescribed condition, when it is then to be delivered by that third person to a grantee, grantor, promisee, promisor, obligee, obligor, bailee, bailor, or any agent or employee of any of the latter. (Amended by Stats. 2000, Ch. 437, Sec. 1. Effective January 1, 2001.)

This law explains what 'escrow' means. It's when someone gives money or important papers to a third person to hold until something specific happens, like buying a house or selling something online.

Key Takeaways

•Escrow is like a safe middle person who holds money or important papers until a deal is done.
•It can be used for buying houses, cars, or even things online.
•The escrow person only gives the money or papers to the right person when everything is ready.

Example

Buying a house

When you buy a house, you might give your money to an escrow company. They hold it until all the papers are signed and everything is ready. Then they give the money to the seller.

Key Takeaways

Example

Key Terms

References

§ 17003 Escrow Transaction Definition

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References