This section is from the book "A Treatise On The Law Of Vendor And Purchaser Of Real Estate And Chattels Real", by T. Cyprian Williams. Also available from Amazon: A treatise on the law of vendor and purchaser of real estate and chattels real.
(m) Grant v. Mills, 2 V. & B. 306; Winter v. Anson, 3 Russ.
488; Collins v. Collins, 31 Beav. 347.
(n) Parrott v. Sweetland, 3 My. & K. 655; Dixon v. Gayfere, 1 De G. & J. 655; and see Clarke v. Royle, 3 Sim. 499; Re Albert, etc. Co., L. R. 11 Eq. 164, 178, 179.
(o) Bond v. Kent, 2 Vera. 281.
(p) Capper v. Spottiswoode, Taml. 21.
Where land is taken by agreement or compulsorily under the Lands Clauses Act, 1845 (x), the vendor has the like lien as in the case of an ordinary sale, and not only for the price of the land, but for all compensation money payable to him (y).
Lien on land taken under the Lands Clauses Act, 1845.
A vendor's lien on the land sold for unpaid purchase money is not required to be registered by the Middlesex Registry Acts; nor was such registration necessary under the old Yorkshire Registry Acts (z). But by the Yorkshire Registries Act, 1884 (a), no lien on any lands in Yorkshire in respect of any unpaid purchase money shall have any effect or priority against any assurance for valuable consideration which may be registered under this Act, unless and until a memorandum of such lien or charge has been registered in accordance with the Act. Where a sale of land situate in a compulsory registration district is to be completed (b) without payment of the whole price, the vendor must take care to have his vendor's lien entered on the register as an incumbrance prior to registration (c); for if this be not done, it appears that the lien will be extinguished on the purchaser's registration as proprietor with an absolute title. The lien will, however, remain unaffected by registration of the title, if the purchaser be registered as proprietor with a possessory title only, or with a qualified title excepting the vendor's lien, or (in the case of a sale of leaseholds) with a good leasehold title (d). But as all such titles may be subsequently turned into an absolute title (e), the only safe course is to register the vendor's lien in all cases.
Vendor's lien on lands in Middlesex or Yorkshire.
(q) Nairn v. Browse, 6 Ves. 752; see Mackreth v. Symmons, 15 Ves. 329, 348.
(r) Be Brentwood, etc. Co., 4 Ch. D. 562.
(s) Nives v. Nives, 15 Ch. D. 649.
(t) Tardiffe v. Scrughan, cited 1 Bro. C. C. 423; Buckland v. Pocknell, 13 Sim. 406, 412; Matthew v. Bowler, 6 Hare, 110; Dixon v. Gayfere, 1 De Gr. & J. 655, 662.
(u) Mackreth v. Symmons, 15 Ves. 329, 350-354; Buckland v. Pocknell, Dixon v. Gayfere, ubi sup.; Jersey v. Briton, etc. Co., L. R. 7 Eq. 40
(x) Stat. 8 & 9 Vict. c. 18.
(y) Walker v. Ware, etc. Ry. Co., L. R. 1 Eq. 195; Wing v. Tottenham, etc. By. Co., L. R. 3 Ch. 740; Allgood v. Merrybent, etc. By. Co., 33 Ch. D. 571; see above, p. 919. But the lien does not extend to the costs of an arbitration, by which the purchase money has been ascertained; Ferrers v. Stafford, etc. By. Co., L. R. 13 Eq. 524.
(z) Kettlewell v. Watson, 26 Ch. D. 501, 507.
(a) Stat. 47 & 48 Vict. c. 54, s. 7; Battison v. Hobson, 1896, 2 Ch. 403, 412; above, pp. 362 sq.
On land situate in a compulsory registration district.
The vendor's lien, like other equitable interests (f), is enforceable, as a rule, against all persons who claim under the purchaser's estate in the land sold, either for a legal estate or interest by operation of law, by gratuitous assignment, or as purchasers for value with notice of the lien, or for an equitable estate or interest (g); but not against any person who has acquired a legal estate or interest in the land sold in good faith as purchaser for value without notice of the lien (h).
Against whom the vendor's lien is enforceable.
{b) Above, pp. 369 sq.
(c) See Land Transfer Rules, 1903, Nos. 7, 8, 46, 175 - 181.
(d) Stat. 38 & 39 Vict. c. 87, ss. 7 - 9, 13, 29 - 35, 38; Land Transfer Rules, 1903, rr. 52 - 57, 140 - 143; Wms. Real Prop. 626 sq., 19th ed.
(e) See Land Transfer Rules, 1903, No. 36.
(/) Above, pp. 496 sq.
(g) Mackreth v. Symmons, 15 Ves. 329, 337, 349; Cave v. Cave, 15 Ch. D. 639, 646 - 649; Kettle-well v. Watson, 26 Ch. D. 501, 508.
(h) Smith v. Evans, 28 Beav. 59.
But if the vendor execute a conveyance containing a statement of payment and receipt of the whole purchase money, and allow the purchaser to have the custody of this deed and the other title deeds without obtaining payment of the price, he has put it in the purchaser's power to deal with the land as his own; and it has been held on this ground that a vendor, who so acted, had an inferior claim on the land to an equitable mortgagee from the purchaser by deposit of the title deeds; for the mortgagee was entitled to rely on the statement of payment of the whole price, and the purchaser was estopped, as against him, from asserting the untruth of the representation so made (i). So, where a vendor joined with the purchaser in executing a mortgage of the land sold (k), and where he executed a conveyance for the express purpose of enabling the purchaser to raise money by mortgage (l), it was held that he could not assert any lien for unpaid purchase money against the mortgagee. And where, under the old Yorkshire Registry Acts (m), vendors of land in Yorkshire had executed a conveyance and allowed it to be registered with the object of enabling the purchaser to re-sell the land in lots, and the conduct of their solicitor, to whom they left everything, was such as to induce sub-purchasers to believe that the purchaser had full power to deal with the land, it was held that they could not assert their lien for unpaid purchase money as against sub-purchasers taking an equitable estate in the land without notice of the vendors' intention to insist on their lien (n).
Where the vendor has put it in the purchaser's power to dispose absolutely of the land.
If the vendor execute a conveyance to the purchaser without receiving payment of the whole price, he has no lien at common law authorising him to retain possession of the title deeds (o). It appears, however, that his equitable lien on the land sold gives him the right to keep the title deeds until payment (p). As we have seen (q), the vendor is entitled to retain possession and defer conveyance of the land sold until payment of the whole price; and if he propose to make conveyance on payment of part only, he should, before parting with his estate in the land sold, make such stipulation as he desires concerning the custody of the title deeds, including the conveyance itself, pending full payment. And he should not forget that, if before the price is paid he allow the purchaser to have possession of the title deeds, including a conveyance from himself containing a receipt for the purchase money in full, he puts it in the purchaser's power to create, not only legal estates or interests, but also equitable charges, which will exclude or have priority over his vendor's lien (r). On the other hand, if the unpaid vendor retain all the title deeds in his own possession, a subsequent purchaser or mortgagee from the purchaser will be affected with notice of the lien, if he omit to make inquiry for the deeds, and so will be postponed to the vendor's claim, notwithstanding that he have acquired the legal estate (s).
 
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