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Legal Terms & Definitions 2026 Law Update

What is an "escrow" in the booklet?

A

A county clerk's filing of a certificate of official character.

B

The placement of an instrument with a depository to be delivered to a third person upon a designated event.

C

A sworn statement subscribed before a notary.

D

A method of proving a deed by two subscribing witnesses.

Correct Answer

B. The placement of an instrument with a depository to be delivered to a third person upon a designated event.

Detailed Explanation

Escrow describes conditional delivery, not present completion. In "Definitions and General Terms," escrow is the placing of an instrument in the hands of a person as depository who, on the happening of a designated event, is to deliver the instrument to a third person. Not to be confused with immediate delivery or recording, the escrow agreement is described as unalterable once established.

Legal Terms & Definitions Question #190
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