This section is from the book "Real Estate Principles And Practices", by Philip A. Benson, Nelson L. North. Also available from Amazon: Real Estate Principles and Practices.
Occasionally it is found convenient to make a conditional delivery of the deed. For example, the seller is not ready at the closing to submit proof that he has paid a certain lien upon the property and it would be inconvenient to call all the parties together again. In that event the deed may be delivered "in escrow" to a third person who acts as agent for both seller and purchaser and who is authorized to deliver the deed upon receiving proof of payment of the lien. The terms of the agreement under which the delivery is made should be very carefully drawn specifying exactly the conditions to be met before final delivery and should be signed by the seller and purchaser.
From the moment however that the instrument is legally delivered, the grantor's rights cease, and the purchaser becomes from that instant entitled to all rights conveyed by the instrument.
 
Continue to: