Property Ownership

In Hawaii, what is the 'doctrine of equitable conversion'?

AA. Converting a leasehold to a fee simple estate through payment
BB. Once a valid purchase contract is signed, equity treats the buyer as owner and the seller as holding legal title in trust for the buyer✓ Correct
CC. Converting personal property to real property through permanent installation
DD. The equitable distribution of property in a divorce proceeding

Explanation

Equitable conversion occurs when a binding purchase contract is signed—equity views the buyer as the equitable owner and the seller as holding legal title in trust, affecting rights and risks.

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