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[Music] hello and welcome to profit Ailes property video number 41 Im your host Dale Whitman in this video were going to study the doctrine of equitable conversion a doctrine that applies whenever there is a contract for the sale of real property now what equitable conversion says is a little hard to believe it says that when an enforceable contract of sale is formed the nature of the parties interests in the property change now heres a little diagram with a vendor and a purchaser who have entered into a contract of sale what equitable conversion tells us is that as soon as that contract becomes specifically enforceable the vendors interest is converted into personal property even though they still have legal title to the land they are regarded as having personal rather than real property on the other side of the transaction as soon as the contract becomes specifically enforceable the purchasers interest is treated like it was already real property now notice that this happens even