Contracts
An Arizona seller accepts a buyer's offer. Before escrow closes, the property is destroyed by fire. Under the doctrine of equitable conversion, who bears the risk of loss?
AThe seller, because they still hold legal title
BThe buyer, because equitable title passed at contract execution✓ Correct
CThe loss is split equally between buyer and seller
DThe escrow company bears the risk
Explanation
Under the doctrine of equitable conversion, once an executory contract is signed, equitable title passes to the buyer. The buyer bears the risk of loss unless the contract provides otherwise.
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