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<title>Equitable conversion</title>

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<table class="sidebar nomobile nowraplinks hlist law-sidebar"><tbody><tr><th class="sidebar-title"><a href="Equity_(law)" title="Equity (law)">Equitable doctrines</a></th></tr><tr><td class="sidebar-image"><span typeof="mw:File"></span></td></tr><tr><th class="sidebar-heading">

Doctrines</th></tr><tr><td class="sidebar-content">

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<li><a href="Estoppel" title="Estoppel">Estoppel</a></li>

<li><a href="Hotchpot" title="Hotchpot">Hotchpot</a></li>

<li><a href="Knowing_receipt" title="Knowing receipt">Knowing receipt</a></li>

<li><a href="Laches_(equity)" title="Laches (equity)">Laches</a></li>

<li><a href="Doctrine_of_marshalling" title="Doctrine of marshalling">Marshalling</a></li>

<li><a href="Unconscionability" title="Unconscionability">Unconscionability</a></li>

<li><a href="Undue_influence" title="Undue influence">Undue influence</a></li>

<li><a href="Subrogation" title="Subrogation">Subrogation</a></li></ul></td>

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Defences</th></tr><tr><td class="sidebar-content">

<ul><li><a href="Bona_fide_purchaser" title="Bona fide purchaser">Bona fide purchaser</a></li>

<li><a href="Clean_hands" title="Clean hands">Clean hands</a></li></ul></td>

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<a href="Equitable_remedies" class="mw-redirect" title="Equitable remedies">Equitable remedies</a></th></tr><tr><td class="sidebar-content">

<ul><li><a href="Account_of_profits" title="Account of profits">Account of profits</a></li>

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Related</th></tr><tr><td class="sidebar-content">

<ul><li><a href="Court_of_Chancery" title="Court of Chancery">Court of Chancery</a></li>

<li><a href="Equitable_interest" title="Equitable interest">Equitable interest</a></li>

<li><a href="History_of_equity_and_trusts" title="History of equity and trusts">History of equity</a></li>

<li><a href="Maxims_of_equity" title="Maxims of equity">Maxims of equity</a></li>

<li><a href="Tracing_(law)" title="Tracing (law)">Tracing</a></li>

<li><a href="Trust_law" class="mw-redirect" title="Trust law">Trust law</a></li></ul></td>

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<p><b>Equitable conversion</b> is a doctrine of the <a href="Law" title="Law">law</a> of <a href="Real_property" title="Real property">real property</a> under which a purchaser of real property becomes the <a href="Equitable_title" class="mw-redirect" title="Equitable title">equitable owner of title</a> to the property at the time they sign a <a href="Contract" title="Contract">contract</a> binding them to purchase the land at a later date. The seller retains <a href="Legal_title" class="mw-redirect" title="Legal title">legal title</a> of the property prior to the date of conveyance, but this land interest is considered <a href="Personal_property" title="Personal property">personal property</a> (a right to the payment of money, rather than a right to the property<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup>). The <a href="Risk_of_loss" title="Risk of loss">risk of loss</a> is then transferred to the buyer – if a house on the property burns down after the contract has been signed, but before the deed is conveyed, the buyer will nevertheless have to pay the agreed-upon purchase price for the land unless the seller in possession or deemed in possession has failed to protect it. Such issues can and should be avoided by parties by stipulating in the contract who will bear the loss in such occurrences. The above rule varies by jurisdiction, but is the general rule.

</p>

<div class="mw-heading mw-heading2"><h2 id="Effect_of_death_of_a_party">Effect of death of a party</h2></div>

<p>If one of the parties dies after the contract for sale of the property has been executed, the doctrine will govern how that party's interest will pass to their heirs. For example, the seller <a href="Will_(law)" class="mw-redirect" title="Will (law)">wills</a> their real property to their son, and their <a href="Personal_property" title="Personal property">personal property</a> to their daughter. If the seller dies after a contract for conveyance is signed by a buyer, the seller's interest in the land will be treated as personal property, and the proceeds of the sale will pass to their daughter. In most jurisdictions, the real property interest created by the contract will pass to the buyer's heirs, while the seller's personal property interest created by the contract will pass to the seller's estate.

</p><p>The <a href="U.S._state" title="U.S. state">State</a> of <a href="New_York_(state)" title="New York (state)">New York</a> does not recognize equitable conversion. In New York, as long as the buyer is without fault, the risk of loss remains on the seller until the buyer takes title or possession.

</p>

<div class="mw-heading mw-heading2"><h2 id="Uniform_Vendor_and_Purchaser_Risk_Act">Uniform Vendor and Purchaser Risk Act</h2></div>

<p>A growing minority of States have adopted the Uniform Vendor and Purchaser Risk Act (UVPRA) in one form or another.<sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> The UVPRA bases the legal consequences of no-fault casualty loss on the right of possession of the property at the time the loss occurs. See Brush Grocery Kart v. Sure Fine Market, 47 P. 3d 680 (Colo. 2002). Generally, the provisions of the UVPRA can be modified or avoided in the <a href="Land_Sale_Contract" class="mw-redirect" title="Land Sale Contract">Land Sale Contract</a>.

</p>

<div class="mw-heading mw-heading2"><h2 id="The_"Massachusetts_Rule"">The "Massachusetts Rule"</h2></div>

<p>In Massachusetts and a handful of other states, the seller continues to bear the risk until the title is actually transferred to the buyer, unless there is an agreement to the contrary. See Brush Grocery Kart v. Sure Fine Market, 47 P. 3d 680 (Colo. 2002).

</p>

<div class="mw-heading mw-heading2"><h2 id="References">References</h2></div>

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</style><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://www.econveyancingadelaide.com.au/">"Conveyancing Adelaide"</a>. <i>E Conveyancing Adelaide</i><span class="reference-accessdate">. Retrieved <span class="nowrap">July 18,</span> 2014</span>.</cite></span>

</li>

<li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text">Rabin, Edward et al. Fundamentals of Property Law. Foundation Press: New York, 2006. pp. 1128–1129.</span>

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