Contracts
Vermont's doctrine of equitable conversion holds that once a purchase contract is signed:
AThe seller regains full ownership if the deal falls through
BThe buyer acquires equitable title, and the seller holds legal title as trustee until closing✓ Correct
CThe contract is automatically converted to a lease
DBoth parties share equal rights to the property
Explanation
Under equitable conversion, once a binding purchase contract is signed, the buyer acquires equitable title (beneficial ownership) while the seller retains legal title until the deed is delivered at closing. Risk of loss rules may apply.
Related Vermont Contracts Questions
- An addendum to a Vermont purchase contract is:
- If a buyer makes an offer and the seller changes the price and accepts, the buyer's original offer has been:
- A void contract in Vermont real estate is one that:
- For a real estate contract to satisfy Vermont's Statute of Frauds, it must be:
- Vermont's attorney closing requirement means that:
- A Vermont buyer's offer is accepted by the seller. The buyer then discovers the seller cannot deliver clear title by closing. The buyer's remedy is typically:
- A counteroffer in Vermont real estate negotiations:
- Vermont's 'notice requirements' in a real estate contract typically require that notices be:
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