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Simple English definitions for legal terms
delivery in escrow
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A quick definition of delivery in escrow:
Delivery in Escrow: When someone gives something to a special person called an "escrow agent" to hold onto until a certain condition is met. For example, if you want to buy a stock, you might give money to an escrow agent who will hold onto it until they receive the stock certificates from the seller. This way, both the buyer and seller can be sure that they will get what they want. The escrow agent is like a middleman who makes sure everything is fair and everyone gets what they agreed to.
A more thorough explanation:
Definition: Delivery in escrow refers to the physical transfer of something to an escrow agent who holds it until a specific condition is met. Once the condition is fulfilled, the agent releases the item to the intended recipient.
Example: A common example of delivery in escrow is when a buyer purchases stocks from a seller. The buyer transfers the cash to an escrow agent, who holds it until they receive the stock certificates from the seller. Once the certificates are received, the agent releases the cash to the seller. This type of delivery creates immediate conditional rights in the buyer.
Another example of delivery in escrow is when a homebuyer puts down a deposit on a house. The deposit is held in an escrow account until the sale is finalized, at which point the funds are released to the seller.
These examples illustrate how delivery in escrow can be used to create a secure transaction between two parties. By using an escrow agent, both parties can trust that the transaction will be completed fairly and that their interests will be protected.