Escrow & Title
In NH, the 'doctrine of equitable conversion' in a real estate contract means:
AThe buyer pays the same taxes as the seller
BOnce a purchase contract is signed, the buyer holds equitable title and bears the risk of loss if the property is damaged✓ Correct
CThe seller retains risk of loss until closing
DTitle automatically converts to the buyer upon signing
Explanation
Under the doctrine of equitable conversion, once a purchase and sale agreement is signed, the buyer is considered the equitable owner. In some jurisdictions, this means the buyer bears the risk of loss if the property is damaged before closing—though many NH contracts include specific risk of loss provisions addressing this.
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