During an escrow closing, the seller delivered the deed to the escrow agent on May 4....

During an escrow closing, the seller delivered the deed to the escrow agent on May 4. The buyer delivered final payment for the house to the escrow agent on July 4. The escrow agent delivered the deed to the buyer on September 4. There were no unforeseen circumstances.

When did first delivery occur? When did second delivery occur? When did title to the house transfer from the seller to the buyer? What is one advantage an escrow closing has over a traditional roundtable closing? What is one disadvantage of having an escrow closing instead of a roundtable closing?

Solutions

Expert Solution

The first delivery occurred on may 4th when the seller delivered the deed to the escrow agent.

The second delivery occurred on September 4th when the escrow agent delivered the deed to the buyer.

The title of the house transferred from the seller to the buyer on September 4th when the deed was delivered to the buyer by the escrow agent.

The advantage of having an escrow over roundtable is that there is no risk of the buyer or seller walking away from the deal in the time between till the deal is completed since the papers are handed to the escrow agent and it remains with him.

The disadvantages of having an escrow is that it increases the cost of transactions as some amount of money has to paid to the agent.

keosha answered 2 years ago

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