If an escrowee prematurely delivers a deed, what is the status of that deed?

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Prepare for the Real Estate Transactions Exam. Study with comprehensive questions, detailed hints, and explanations to enhance your knowledge and pass the exam with ease. Get exam-ready today!

When an escrowee prematurely delivers a deed, the status of that deed is considered void because it does not align with the grantor's intent. In real estate transactions, the role of the escrowee is to hold documents and funds until all conditions of the transaction are met as per the agreement. The grantor intends for the deed to be delivered only under specific conditions or once certain requirements are satisfied. If a deed is delivered before these conditions are fulfilled, it contradicts the grantor's expressed intent and the intended purpose of the escrow arrangement. This is why the deed lacks validity; it is essential that the delivery reflects the grantor's wishes as established in the escrow agreement, ensuring the legal and proper transfer of property rights.

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