Equitable Conversion

Definition

A doctrine that regulates the ownership of real property in the interval between contract formation and closing. Once the parties execute an enforceable contract for the sale and purchase of property, the buyer is regarded as the equitable owner of the property, and the seller acquires the equitable right to be paid the purchase price. The buyer's equitable ownership is treated as an interest in real property, and the seller's right to the sale proceeds is treated as personal property.

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