Portage Realty Corp. v. Baas

This appeal was brought to resolve a dispute concerning the priority of a mechanics’ lien over a subsequent mortgage.

In March and April of 1974, John Baas contacted Lewis Weaver, a salesman for Portage Realty Corporation (hereinafter Portage), and discussed the possible construction of several houses, which he intended to resell at a profit. On April 8, 1974, while negotiations with Weaver continued, Mr. Baas entered into an agreement with a salesman from Ford Realty to purchase three vacant lots located on Loves Shore Drive, Algansee Township, Michigan. On May 16, 1974, Baas purchased a…