Contracts
Under New York law, the 'doctrine of equitable conversion' in a real estate contract means that:
AA contract can be converted from residential to commercial purpose
BOnce a binding contract is signed, the buyer holds equitable title and the seller holds legal title in trust for the buyer; the risk of loss shifts to the buyer✓ Correct
CThe lender holds equitable title during the mortgage period
DThe court may convert a void contract into a voidable one
Explanation
Under the doctrine of equitable conversion in New York, once a valid real estate purchase contract is signed, the buyer is treated as the equitable owner (holding equitable title) and the seller holds legal title in trust for the buyer. Traditionally, this meant the risk of loss for casualty damage was on the buyer between contract and closing.
Related New York Contracts Questions
- In New York, a real estate purchase contract that is 'subject to' the sale of the buyer's current home is an example of a:
- In New York, when a seller provides a property condition disclosure statement, it must be provided to the buyer:
- In New York, a real estate purchase contract can be rescinded by mutual agreement of the parties, which is called:
- In New York, a 'holdover clause' in a residential lease typically converts the tenancy to:
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- A walk-through inspection before closing in New York allows the buyer to:
- A counteroffer legally:
- The doctrine of 'merger' in real estate contracts provides that:
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