What is Equitable Conversion?

Legal Definition
Equitable conversion is a doctrine of the law of real property under which a purchaser of real property becomes the equitable owner of title to the property at the time he/she signs a contract binding him/her to purchase the land at a later date. The seller retains legal title of the property prior to the date of conveyance, but this land interest is considered personal property (a right to the payment of money, rather than a right to the property). The risk of loss is then transferred to the buyer – if a house on the property burns down after the contract has been signed, but before the deed is conveyed, the buyer will nevertheless have to pay the agreed-upon purchase price for the land. Such issues can and should be avoided by parties by stipulating in the contract who will bear the loss in such occurrences. The above rule varies by jurisdiction, but is the general rule.
-- Wikipedia
Legal Definition
This phrase applies to the alteration of property to become real estate and for real estate to become property.
Legal Definition
Treating real property as personal, or the reverse, to carry out a testator’s intention or to secure the rights of the parties. See 128 111. 430, 15 Am. St. Rep. 120, 21 N. E. 503.
-- Ballentine's Law Dictionary