Effect of death of a party
If one of the parties dies after the contract for sale of the property has been executed, the doctrine will govern how that party's interest will pass to his heirs. For example, the seller wills his real property to his son, and his personal property to his daughter. If the seller dies after a contract for conveyance is signed by a buyer, the seller's interest in the land will be treated as personal property, and the proceeds of the sale will pass to his daughter. In most jurisdictions, the real property interest created by the contract will pass to the buyer's heirs, while the seller's personal property interest created by the contract will pass to the seller's estate.
The State of New York does not recognize equitable conversion. In New York, as long as the buyer is without fault, the risk of loss remains on the seller until the buyer takes title or possession.