Transfer of Property, 8% of the examination
Escrow
A neutral depositary holding money, documents, or other property for delivery according to agreed conditions.
A valid escrow generally requires an enforceable underlying agreement and conditional delivery of money, documents, or other property to the depositary. The escrow holder follows its instructions rather than advocating for either party or resolving their legal disputes. Later instructions must be read with the agreement's priority provisions. Resolve conflicting instructions through authorized written clarification; a party may be able to waive a condition solely for that party's benefit.
Test the distinction
A relevant question from Transfer of Property, selected because its facts or explanation use this concept.
What is the essential function of an escrow in a California transaction?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.
Primary sources
Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.