Implied Lien Law and Legal Definition

Implied lien is a lien which may be implied and declared by a court of equity out of general considerations of right and justice as applied to the relations of the parties and the circumstances of their dealings. It will be based upon the fundamental maxims of equity and it may be created in the absence of an express contract.

The lien in favor of a vendor who has conveyed the legal title to real estate to a purchaser, as security for the unpaid purchase money is an implied lien. The implied lien of a vendor is only permitted as a security for an unpaid purchase price. Such an implied lien will not be enforced when it would operate as a means of deception or in prejudice of good faith to those affected by it. [Venner v. Farmers' Loan & T. Co., 90 F. 348 (6th Cir. Mich. 1898)]