Contracts
In Maryland, the doctrine of equitable conversion means that once a sales contract is signed:
AThe buyer immediately receives legal title to the property
BThe buyer holds equitable title and the seller holds legal title in trust for the buyer✓ Correct
CAll contingencies are automatically waived
DThe seller can no longer accept other offers
Explanation
Under equitable conversion, upon signing the contract, the buyer holds equitable title (beneficial ownership) while the seller retains legal title as a form of security until settlement.
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