Whenever any real property encumbered by mortgage or lien is conveyed subject to the mortgage or lien and there is a provision in the conveyance that the grantee shall assume and pay the encumbrance, the holder of the mortgage or lien may, upon the nonpayment of the the encumbrance, maintain an action in his own name upon the grantee's promise, without obtaining an assignment thereof from the grantor of the property.
(1949 Rev., S. 7796; P.A. 82-160, S. 27.)
History: P.A. 82-160 replaced “estate” with “property” and rephrased the section.
Undertaking of grantee held to be an absolute contract to pay the mortgage debt. 42 C. 253; 48 C. 239. Prior to statute, mortgagee could not sue grantee who assumed the mortgage debt. 49 C. 191. Relationship and rights of parties. 51 C. 39. Failure of husband married before 1877 to join in mortgage no defense to action on assumption. 72 C. 714. Cited. 73 C. 398. Extends to all subsequent grantees of mortgage. 75 C. 70. But merely taking of equity subject to mortgage does not constitute assumption of debt, and even assumption of debt is open to explanation. 76 C. 584; 87 C. 567; 88 C. 197; 89 C. 66. Right of purchaser of land who pays mortgage to have it assigned to him. 95 C. 585. Mortgage holder may make liable one who assumed, even though in chain of title some previous owner of the equity did not assume. 110 C. 86. Cited. 111 C. 277; 114 C. 201; 124 C. 338; 190 C. 756.
Cited. 5 CS 206.
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