Equitable Conversion

Once a contract for the sale of land is signed, equity treats the buyer as the owner of the real property and the seller as the owner of the purchase price. Risk of loss for casualty occurring between contract and closing falls on the buyer under the majority common-law rule, absent a contrary agreement.

Related Real Property Contracts & Conveyancing rules

• Statute of Frauds — Real PropertyA contract for the sale of real property must be in writing signed by the party to be charged, and must describe the…
• Marketable TitleA vendor of real property impliedly covenants to deliver marketable title at closing — title reasonably free from…
• Deed RequirementsA valid deed must: (1) be in writing; (2) identify the grantor and grantee; (3) contain words of conveyance (granting…
• Delivery of DeedsDelivery requires the grantor's present intent to be immediately bound by the conveyance. Manual transfer raises a…
• Types of Deeds — Covenants of TitleA general warranty deed contains six covenants: seisin, right to convey, against encumbrances, quiet enjoyment,…
• Merger DoctrineUpon closing, the contract for the sale of land merges into the deed; the contract's terms are extinguished and the…
• Adverse PossessionAdverse possession ripens into title when the claimant's possession is: (1) actual; (2) open and notorious; (3)…
• DedicationDedication is the voluntary transfer of private land to public use. Statutory dedication requires compliance with…

Part of Real Property on Core Legal Rules — foundational MBE-tested principles with primary-source citations.