FACTS: Seller and buyer enter into a contract for the sale of seller’s property.  Buyer is a “flipper.”  Prior to close of escrow, buyer demands access to the property to begin renovations because the buyer has equitable title.

ISSUE: Does equitable title allow the buyer access to the property to perform renovations prior to close of escrow?

ANSWER: See Discussion.

DISCUSSION:

Under the doctrine of equitable conversion, “despite transfer of equitable title, the buyer is not entitled to possession prior to transfer of legal title unless the contract expressly entitles him to possession or the seller voluntarily grants him possession.”  Stapley v. American Bathtub Liners, Inc., 162 Ariz. 564, 785 P.2d 84 (App. 1989).

Section 1e of the Arizona REALTORS^® Residential Resale Real Estate Purchase Contract does not grant possession of the property to the buyer until close of escrow.  Therefore, unless seller voluntarily grants buyer possession of the property, buyer’s equitable title does not grant buyer the authority to access the property to perform renovations prior to close of escrow.