FAQs

Q: What is a court-appointed receiver?

A receiver is an uninterested third party appointed by the court to manage a property in litigation and receive its rents and profits. The receiver applies or disposes of rents and profits at the discretion of the court when it does not seem reasonable for either the plaintiff or the defendant to hold them. Normally a receiver situation arises in cases involving a business problem or lawsuit, bankruptcy or foreclosure. Receivers can be requested in other instances as well. A receiver can be appointed in cases involving a divorce, estate, guardianship or trustee including (but not limited to) cases for the benefit of minor children. With cases involving a nervous creditor, or in a case in connection with a lawsuit, a plaintiff’s attorney may request the judge to appoint a receiver to manage or protect the condition or value of the assets. The receiver oversees and takes care of the assets under the supervision and direction of the court.

Q: Is a receiver only appointed to “watch out” for the interests of one side or party in a case?

No. In fact, the receiver works directly under the order and authority of the court or judge. In some cases, there may be outside third-party interests to be protected or considered.

Q: Why use a receiver to sell a property? Why not just have a sale by the sheriff or a writ of execution?

There are a number of ways and reasons wherein a receiver may be able to do a better job: The execution requires cash on sale Prospective buyers are able to walk through and thoroughly inspect a property being sold by a receiver The receiver can have the benefit of considering open market sales and can list property on a Multiple Listing Service (MLS) The receiver and/or their associates, agents or sub-agents can devote the time and attention required to prepare, repair, maintain and market an assigned property

Q: Do you use a receiver to sell a property “fast and cheap”?

A receiver’s normal duties and direction are to try to get the best value for the benefit of the debtor, creditor and possible third-party interests. The receiver works under court-ordered direction and authority. He or she does not work for any specific party or interest.

Q: What is the work process for a court-appointed receiver?

Comply with the court orders specific to the duties and responsibilities of each assignment Inspect and evaluate the property and assets Compile and submit full and complete reports and manage information Organize and keep accurate records Take and direct all actions as a prudent and conservative property manager or representative

What is a court-appointed receiver?

When is a receiver used?

Is a receiver only appointed to “watch out” for the interests of one side or party in a case?

Why use a receiver to sell a property? Why not just have a sale by the sheriff or a writ of execution?

Do you use a receiver to sell a property “fast and cheap”?

Does a receiver only sell managed properties?

What is the work process for a court-appointed receiver?