Contracts
In a Delaware real estate transaction, the doctrine of equitable conversion means that:
AThe seller retains legal title until all contingencies are removed
BThe buyer's equitable interest in the property begins when the purchase contract is signed✓ Correct
CThe title company converts the deed to electronic format
DThe seller can convert the listing to a shorter-term agreement
Explanation
Equitable conversion holds that once a real estate contract is signed, the buyer acquires an equitable interest in the property, even though the seller retains legal title until closing. This can affect who bears the risk of loss if the property is damaged before closing.
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