Attorney Richard Ormond, of Buchalter Nemer, noted that in regard to appointing court orders—the receiver’s “contract” with the court—it is vital that there be no ambiguities. If a defendant files bankruptcy or the plaintiff forecloses, there must be clear instructions contained in the order as to the Receiver’s responsibility. With regard to the sale of the property and leases that are one year or more, an additional order is required.

Peter Davidson, a partner at Ervin Cohen & Jessup, said that “There also must be thorough oversight by the receiver on insurance, health and safety issues.”

To convey the scope of functions performed by a receiver, Grant noted that he/she: “Controls the assets and/or sells property ‘as is;’ Acquires, confirms and/or reinstates insurance of properties in receivership; Interfaces with owners in condo homeowner associations or tenants of rental properties--something lenders avoid because of legal implications; assures that both parties to the action and the judge are always informed; uses existing building permits innovatively to complete unfinished projects; sells homes from a receivership estate without the lender incurring any ownership-related liabilities; and calls bonds for the benefit of HOAs or files unlawful detainers on tenants who are in default.”