equitable conversion


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equitable conversion

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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It merges chapters on government forbearance and takings and replaces old cases with new ones in adverse possession, the numerus clausus principle, security interests, and equitable conversion.
Although these cases are pursued under an equitable lien theory, the interest of the contract purchasers could be akin to ownership of the property under the theory of equitable conversion, which treats a contract purchaser as the owner of the property.
Disabled equitable conversion of minibuses / framework agreement.