In what scenario does an escrow agent have a binding obligation to the grantor?

An escrow agent has a binding obligation to the grantor when there are written instructions to deliver the deed. This is because the escrow agent acts as a neutral third party who holds documents and funds during a real estate transaction, following the explicit instructions of the parties involved. Written instructions are crucial as they provide clear guidance on the agent's responsibilities and the conditions under which the deed should be delivered to the grantee.

When the grantor provides written instructions, the escrow agent is legally bound to follow those directives, ensuring that the transaction proceeds smoothly and according to the agreed-upon terms. This written documentation significantly reduces the ambiguity that might arise from oral instructions, which may be subject to misunderstandings or disputes.

In contrast, oral instructions lack the formal clarity and enforceability that written instructions provide. Additionally, circumstances like the agent being a grantee or conditions being met after delivery introduce complexities that do not establish a binding obligation in the same straightforward manner as the presence of written directives. Thus, the scenario where the escrow agent is bound to the grantor is clearly delineated by having the appropriate written instructions.