What is the term for a grant deposited by the grantor with a third person and delivered on performance of a condition?

Study for the California Escrow Exam. Dive into detailed content with flashcards and multiple choice questions, accompanied by explanations and hints. Ensure your success on test day!

Escrow is the arrangement where the grant or funds are placed with a neutral third party and will be delivered to the recipient only after the specified condition is met. This setup provides security for both sides: the grantor’s deed or money is safeguarded, and the recipient only receives it once requirements (like signing, payment, or performance of duties) are fulfilled. A bailee is just someone who holds property for another under a bailment, not necessarily releasing it upon a condition. A promisor is the party who makes a promise, not the holding arrangement itself, and encumbered describes property burdened by a claim or lien, not the mechanism of delivering on a condition. So the term that fits this scenario is escrow.