How many states typically find effective delivery if escrow instructions are oral and no PSA is present?

The correct answer is that a minority of states typically find effective delivery if escrow instructions are oral and no Purchase and Sale Agreement (PSA) is present.

In real estate transactions, the concept of delivery is crucial for the transfer of property interests, and it is often dictated by specific statutes and case law in each state. While some states may allow oral escrow instructions to be considered effective for certain agreements, this is not a common practice across the entire country.

Many jurisdictions require written agreements to establish clear terms and conditions, as this minimizes disputes and clarifies the intentions of the parties involved. The requirement for a written document is particularly emphasized when there is no formal Purchase and Sale Agreement in place, which serves as a foundational document outlining the details of the sale.

Therefore, while there may be a few states that recognize oral instructions as sufficient for transferring interests when no PSA exists, the prevailing standard is that the majority of states mandate written documentation to ensure clarity and legal enforceability in real estate transactions. This understanding highlights the importance of adhering to established real estate practices and legal requirements to avoid complications during the transaction process.