Contracts

Equitable conversion in Alabama real estate law means that:

AA contract can be converted from bilateral to unilateral
BOnce a purchase contract is signed, the buyer holds equitable title and bears the risk of loss✓ Correct
CAn expired contract can be revived
DThe seller may convert the contract to a lease if the buyer defaults

Explanation

Under equitable conversion, once a purchase contract is signed, the buyer holds equitable title and the risk of loss (unless the contract specifies otherwise), even though legal title hasn't transferred yet.

Related Alabama Contracts Questions

Practice More Alabama Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Alabama Quiz →