- 14 - SEC. 1057. Delivery in escrow DELIVERY IN 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. In this case, the Grant Deed was jointly delivered by the Partnership and AAL to the Title Company with the escrow instructions, so under section 1057 of the California Civil Code and California case law, title to the Fitch Property did not pass to AAL until performance of the conditions in the escrow instructions had been achieved. It has long been held in California, as elsewhere, that delivery of an instrument in escrow conveys no title. In re Chrisman, 35 F. Supp. 282 (S.D. Cal. 1940). Consequently, the warranty deed was delivered to AAL in 1994 when the terms of the escrow were satisfied, and the deed was duly recorded, and not before. Petitioners seek to bring their facts within those of Keith v. Commissioner, 115 T.C. 605 (2000), to show that a title closing is not necessary to establish a closed transaction. The facts of Keith, however, are specifically relevant to a form of transaction under Georgia law known as a “contract for deed”. Georgia law normally construes a contract for deed as a device for passing equitable ownership, leaving the seller with essentially a security interest. Id. at 614.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011