Is there a working and reliable escrow that works on the blockchain?
If there isn't would you use it if I made one? Image creating escrow smart contacts as per your conditions, neither seller nor buyer wouldn't need to trust each other as well as to pay a fee to third-party escrow service providers (of course creating a smart contract costs money but when chosen the right smart contracts platform you could lower it to a minimum).
Or, kindly recommend one you already are using. Thanks.
There is no such thing exist, either it can be a multi signature wallet or custodial third party and that is the actual meaning of escrow. But in future there will be more service providers to become a solution for this issue.
Or please mention if there is any actual decentralized escrow is active which is legit.