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Delivery

DEFINITION

Transfer of a real property interest stated in verifiable legal documents.

EXPLANATION

Delivery in the context of real estate is the transfer of a deed. An executed deed must be delivered from to the grantee by the grantor. The purpose of this step is to ensure that the intent of the grantor is to transfer the property. If the deed is in the possession of the grantee, it is considered delivered.

An executed deed cannot be passed to another party unless it is delivered from the granting party to the grantee.

Delivery and Escrow

Delivery must occur for escrow to be valid.

Section 17003 of the Financial Code defines escrow in legal terms:

“…any transaction wherein one person, for the purpose of effecting the sale, transfer, encumbering or leasing of real or personal property to another person, delivers any written instrument, money, evidence of title to real or personal property, or other thing of value to a third person to be held by such third person until the happening of a specified event or to the performance of a prescribed condition, when it is then to be delivered by such a third person to a grantee, grantor, promisee, promisor, obligee, obligor, bailee, bailor, or any agent or employee of any of the latter.”

Delivery Requires Fulfillment of Conditions

To transfer real estate there is a conditional delivery. A conditional delivery will occur following the fulfillment of an agreed upon set of conditions by the buyer and seller. The various aspects of delivery include:

Transfer of money

Granting the deed and transferring the title to the owner

Transferring loan documentation and required paperwork

To transfer the above instruments, all parties must fulfill their obligations in the original agreed upon contract. This will also include newly amended changes to the contract.

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