This section is from the book "The Law Of Land Contracts", by Asher L. Cornelius. Also available from Amazon: Michigan Law Of Land Contracts.
It is well settled that where the vendor of real estate takes no security for the payment of the purchase price he has an equitable lien for such purchase money upon the land so sold.48 This lien attaches notwithstanding the fact that the sale did not convey a title in fee or a legal title, but only an equitable right or interest.49 Such a lien is assignable and may be enforced against the land even though the statute of limitations has run against the personal liability of the vendee.50
47. Stevens v. Stevens, 181 Mich. 438 and 449.
48. Case of Lavin v. Lynch, 203 Mich. 145.
49. Lavin v. Lynch, supra; Ort-man v. Plummer, 52 Mich. 76; Warren v. Fenn, 28 Barb. (N. Y.), 333; Bledsoe v. Games, 30 Mo. 448; Loomis v. Railroad Co., 17 Fed. 301; Curtis v. Buckley, 14 Kan. 449; Board v. Wilson, 34 W. Va. 609 (12 S. E. 778).
In the case of Ortmann v. Plummer, supra, Mr. Justice Campbell said: "The right of a vendor to a lien does not seem to be confined to the sale of a legal title or title in fee. The leading case of Mackreth v. Symmons, 15 Ves. 329 (1 Leading Cases in Equity, 194, and notes), was one relating to what was treated as an equitable title. The doctrine has been applied to copyholds, and appears to be received as to all recognized title. See Adams' Eq. (7th Ed.) p. 128, and notes; Winter v. Lord Anson, 3 Rus8. 488. The lien on an equitable
Interset of Vendee.-It is pro-shall have the power to incumtitle may no doubt be more uncertain, by reason of the danger that bona fide purchasers from the legal holder may interevene and destroy it. But subject to that risk (which is not confined to equitable estates) it may be upheld. In the present case the legal title is still in the railway company, having knowledge of the equities, and defendants are not bona fide purchasers. We see no difficulty in the nature of the title."
50. Lavin v. Lynch, supra; Stringer v. Gamble, 155 Mich. 295.
Bartlett v. Bartlett, 103 Mich. 293. In a summary proceeding to recover possession of lands instituted by the holder of the legal title, it was held that the defendant cannot set up as defense a verbal agreement made by him with the owner for the purchase of the land coupled with evidence of part performance on his part; his remedy if he has any being in equity.
Pomeroy's Equity Jurisprudence, Section 2240, Volume 5.
ber his equitable interest in the real estate in the same manner as the actual holder of the legal title,51 and if the land contract for the property covered by the lien is forfeited or surrendered by the vendee during the life of the lien, the lien holder shall be subrogated to the rights of the vendee as they existed before forfeiture.
51. "Any person furnishing services or materials for the erection of a new building or structure upon land to which the person contracting for such erection has no legal title, shall have a lien therefor upon such (building) buildings or structure; and the forfeiture or surrender of any title or claim of title held by such contracting person to such land shall not defeat the lien upon such building or structure of such person furnishing services or materials as aforesaid. In case the property covered by the lien is held by the vendee in a land contract, and he surrenders or forfeits his rights thereunder, the person or persons holding such liens may be subrogated to the rights of such vendee, as his rights existed immediately before such surrender or forfeiture, by performing the covenants contained in such contract within thirty days after such forfeiture or surrender is made."
Compiled Laws, 1915, Sec. 14798.
Where the contract purchaser of land constructs a building thereon, the lien does not attach to the entire land, but only to the building.
Fuller v. Loan & Bldg. Assn., 110 Mich. 73; Sheldon Kamm & Co. v. Bremer, 166 Mich. 579.
 
Continue to: