Property Ownership

In Oklahoma, the doctrine of equitable conversion means that once a real estate contract is signed:

AThe buyer must pay in equitable currency only
BThe buyer is treated as the equitable owner of the property (bearing the risk of loss), while the seller holds legal title as security for the purchase price✓ Correct
CNo further documentation is needed to close
DThe seller retains all ownership rights until recording

Explanation

Under equitable conversion, when a real estate contract is executed, the buyer acquires equitable title and typically bears the risk of loss if the property is damaged before closing (absent contract provisions to the contrary). The seller holds bare legal title as security.

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