equitable conversion

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A doctrine commonly applied when death intervenes between the signing of a contract regarding real property and the actual closing.The purchase money and the real property are converted, or changed, into each other for purposes of determining the rights of heirs and surviving spouses.If a will left all personal property to one child and all real property to another,and the seller of real estate died before closing,then that particular parcel of property would be treated as if closing had taken place before death and the cash received,so that the child inheriting personal property would take the sale proceeds.

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