Our team at Laverty Chacón has over 30 years’ experience with different types of receiverships in California including Rents & Profits Receiverships and Health & Safety receiverships. We specialize specifically in Rents & Profits receiverships involving commercial real estate and are eager to assist you in uncertain times. Please contact us at (916) 722-0333 or firstname.lastname@example.org if you’d like to discuss how we can help you further.
In order to purchase commercial real estate, it’s quite likely that you will have to take out a loan. Using leverage for a property purchase is typically a sound decision, as it allows you to put less money down and increase your ROI. However, because your lender technically owns the property, they can also begin the foreclosure process to take that property back should you not be able to pay back your loan. A receiver will be appointed by a court during this process because a lot of things can happen between the time the lender begins court action and foreclosure is completed.
A receiver is a neutral fiduciary appointed by the court to take possession and control of different types of assets involved in contentious litigation for the purpose of preserving and maintaining the assets pending the outcome of the court action and further direction from the court.
A receivership in California is the legal term used to describe a situation where the court appoints an impartial person to act as receiver to take possession, control, and preserve a specified asset to prevent loss or other detrimental acts to the asset or party requesting the appointment of receiver pending the outcome of the court action.
Length of a receivership can vary depending on the complexity of the action. Typically, a rents and profits receivership involving real estate will last only a few months pending completion of foreclosure by the lender. There are also other events that could terminate the receivership such as bankruptcy filing or the default is cured.