Receiverships

A receiver is an arm of the court, a temporary occupant and caretaker of the property for the court, and represents the court appointing him/her. The receiver is the medium through which the court acts.

The appointment of a receiver (and creation of a receivership) is an "equitable" procedure, and is said to be available when an ordinary "legal" procedure or remedy--such as an order for one party to pay money to another--isn't adequate to accomplish what a judge thinks should be done in light of the facts or circumstances of the case before the court.

Perhaps the most common receivership situation is where a secured lender believes that its collateral-the rents from a apartment building, for example-are being diverted or wasted by the owner of the property. The secured lender can't gain posession of its collateral until its underlying suit is fully litigated and a judgemnet in its favor is redered by the court. So the lender asks the court to take steps to preserve its collateral in the meantime, and the court normally obliges by appointing a "rents, issues, and profits" receiver, i.e. a special court officer who is instructed to take over the collectoin of the rents being generated by the commercial building and to hold them, as the judges's proxy, until the case is completed.

The PEAK Real Estate Management Group is uniquely qualified to step in and act as the owner of the asset. Our teams are proactive and can quickly assess and understand the issues reducing the exposure to further risk. We will manage and maintain in accordance to the court and can deal with the tenants quickly. It is our goal to anticipate and be proactive while educating all parties through this process and effectively admisitering the receivership.