An experienced receiver working closely with a sophisticated title insurance company can usually obtain free and clear title for the sales of new condo and tract tract home subdivisions on a retail basis. Here’s how…. Read the rest of this entry »
What’s A Receiver? Why You Should Know….
April 20, 2009
What is a receiver? A receiver is an agent of the state or federal court who typically takes possession and control of real estate or a business as a neutral third party pursuant to a court order. A receiver is frequently appointed at the request of a lender whose loan has gone into default in order to protect the lenders collateral.
Why should you know what a receiver is? Lenders are increasingly looking to receivers to take control of, complete and/or sell the commercial property securing their non-performing loans. This is particularly the case with new condominium and tract housing developments (especially those that have homeowners associations), since a receiver can effectively insulate lenders from the onerous long term construction defects liability and related consumer protection obligations that come with this type of real estate. Read the rest of this entry »
Yes, receivers can sell real estate free and clear of mechanics liens.
This is not well known though – not even by title companies, highly experienced bank attorneys or many of the most experienced receivers. Not because these folks aren’t knowledgeable and sophisticated, but rather simply because there hasn’t been much call for selling real estate by receivers, so the area is full of myth and legend and misinformation. Read the rest of this entry »
