medium · National Real Estate Exam
A buyer and seller have a signed contract. Before closing, the city files a petition to condemn the property for a new library.
Under the doctrine of equitable conversion, what happens to the condemnation award?
- The award belongs to the seller because they still hold legal title at the time of the taking.
- The award belongs to the buyer, but the buyer must still pay the full purchase price to the seller.
- The buyer and seller must split the award based on the amount of earnest money paid.
- The contract is voided and the city pays the seller only for the value of the land.
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