Contracts
In Texas, when a contract for sale is executed and all conditions have been satisfied but the closing has not yet occurred, the legal relationship of the parties is:
AThe buyer owns the property in fee simple
BThe buyer holds equitable title; the seller retains legal title until closing✓ Correct
CThe seller owns nothing and the buyer owns everything
DNeither party has any property interest
Explanation
Under the equitable conversion doctrine, once a valid contract is signed, the buyer holds equitable title (beneficial ownership) while the seller retains legal (bare) title as a form of security for payment. The risk of loss may also shift to the buyer at contract execution.
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