What happens if the conditions of an escrow deed are not met?

Prepare for the Real Property Multistate Bar Exam with detailed quizzes, flashcards, and multiple choice questions. Each question includes hints and explanations to help you understand key concepts and excel in your test!

When the conditions of an escrow deed are not met, the title remains with the grantor. An escrow deed is a legal arrangement where a third party holds the deed until certain conditions—usually specified in the agreement—are fulfilled. If those conditions are not satisfied, the deed does not take effect, and ownership of the property does not transfer to the grantee. This means that the original owner (the grantor) retains title to the property since the conditions necessary for the transfer of ownership have not been met.

In this context, the other options are not applicable. If the deed were to be automatically voided, that would imply it is no longer valid, but instead, it simply remains unenforceable until conditions are met. Renegotiating conditions may be possible but is not an automatic requirement; it hinges on the parties' desire to modify their agreement. As for full ownership by the grantee, this cannot occur if the conditions tied to the escrow agreement are unmet, as the necessary transfer mechanism (the fulfillment of those conditions) has not occurred.

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