
Quoting
Schultz v Schultz, 117 Mich App 454, 457; 324 NW2d 48 (1982).
The demand for writing in the statute of frauds "was intended for persons dealing with each other at arm's length and on an equal footing". Emerson v Atwater, 7 Mich 12, 23 (1859). Thus, a review of Michigan case law reveals two instances in which it is proper to declare an equitable mortgage in order to circumvent the requirement for a writing. One such instance occurs when the deed is between parties where one party stands in a relationship of trust or guidance to the other party, such as attorney to client, guardian to ward, or parent to child, and the relationship has been abused.... In that situation, a court may declare a deed to be subject to an equitable mortgage where the deed would have been held to be unencumbered had the parties not been so related.