Contracts

What is the doctrine of equitable conversion in real estate?

AConverting a lease to a purchase
BOnce a contract is signed, the buyer holds equitable title and the seller holds legal title as security for the purchase price✓ Correct
CConverting one type of deed to another
DA tax doctrine for converting property types

Explanation

The doctrine of equitable conversion holds that once a binding purchase contract is signed, the buyer acquires equitable title while the seller retains legal title only as security. This affects risk of loss, inheritance, and other rights during the contract period.

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