Escrow & Title
In New Mexico, when does a buyer become the equitable owner of a property under a purchase contract?
AWhen the deed is recorded
BUpon mutual acceptance (execution) of the purchase contract✓ Correct
COnly at the closing table
DWhen the loan is funded
Explanation
Under the doctrine of equitable conversion, once a purchase contract is fully executed (signed by both parties), the buyer becomes the equitable owner and bears the risk of loss on the property in most jurisdictions.
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