Ally had just signed the sales agreement to buy Emile's house.However,before closing the sale,the house caught fire.According to the rule of equitable conversion,the loss due to fire would be borne by both Alley and Emile equitably.

Question

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Under the rule of equitable conversion, once the sales agreement is signed, the buyer (Ally in this case) is considered to have an equitable interest in the property, and thus bears the risk of loss unless the contract states otherwise. Therefore, the loss due to the fire would be borne by Ally, not both Ally and Emile equitably.

Ally Had Just Signed the Sales Agreement to Buy Emile's