Equitable Title & Risk Between Contract and Closing

Once a purchase contract is signed, the buyer holds EQUITABLE title — an ownership interest recognized before the deed passes — and the seller holds legal title as, effectively, security for payment. Equitable title is why the buyer can insure the property, why specific performance is available (land is unique), and why the buyer's interest survives the seller's death. Risk of loss between contract and closing follows state law or the contract: many contracts keep risk on the SELLER until closing. The doctrine of equitable conversion treats the buyer's interest as real property and the seller's as personal (the right to money).