Contracts

What is the doctrine of 'equitable conversion' in Idaho real estate?

AThe conversion of real property to personal property
BOnce a binding purchase contract is signed, the buyer is treated as the equitable owner and the seller holds legal title in trust for the buyer✓ Correct
CA court-ordered change in property use
DThe conversion of a lease to a purchase

Explanation

Under equitable conversion, as soon as a binding purchase contract is signed, equity treats the buyer as the owner (equitable title) even before closing. This has implications for who bears risk of loss if the property is damaged before closing.

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