Real Estate Receivers
The most common type of receivership action is an action filed on behalf of a secured lender to enforce a default related to a deed of trust. This is known as a real estate receivership and/or a “Rents Issues & Profits” case. There are a variety of circumstances under which a real estate receiver can be appointed, including appointments (1) required to protect, preserve and secure rents during the pendency of a non-judicial foreclosure action; (2) under the specific performance provision of the deed of trust or assignment of rent clause in loan documents; (3) as a result of waste as well as other circumstances involving judicial foreclosures.
In California, the Judicial Council of California has standard Rents Issues and Profit form orders; however, some judges will approve custom orders. Prior to undertaking any duties as receiver, an oath/bond must be filed with the court. Plaintiff’s bonds will be set by the court. Typical provisions in orders appointing receivers include the identification of the amount of the bond, receivers fees, management fees, general duties, treatment of security deposits, limitations on new leases and capital expenditures, monthly accounting requirements, bank accounts, insurance requirements, employment of attorneys by the receiver and the manner and method of the termination of the receiver, including the receiver’s final report & account.
One extremely important aspect of almost all orders appointing receivers is the temporary restraining order. This section orders the owner/defendant to turn over possession, books, records, keys, etc., to the receiver. It also restrains the owner from interfering with the acts of the receiver, encumbering or selling the property and taking any additional action that will impede the ability of the receiver from fulfilling his/her duties.
If you are seeking a California receiver, look no further than FedReceiver. Our team has over 24 years’ experience handling real estate receivership. For more information, please visit our website or contact our offices at (310) 207-8832.