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Competence & Dedication in ReceivershipA Receiver is a court appointed party commonly utilized in real estate foreclosures and business disputes to manage property during the pendency of the underlying action. The appointment of a Receiver is not without some costs; however, the benefits of using a Receiver far outweigh any downside in the case of income properties.Use of a Receiver may be stipulated to by the parties or, if the appointment is contested, a hearing will be held to determine the necessity for and qualifications of a Receiver. Once appointed, the Receiver becomes an officer of the Court and as such enjoys a degree of quasi-judicial immunity. Though the plaintiff or his counsel typically chooses the Receiver, neither the plaintiff nor the defendant - who may have stipulated to his appointment - has any direct input in how the Receiver operates. The Receiver is in complete control of the Receivership estate and is answerable only to the Court that appointed him. Deeds of Trust used in most States generally contain a provision allowing the beneficiary to seek the appointment of a Receiver in the event of default. The power and authority of a court-appointed Receiver is useful in other types of disputes too. One attorney had a Receiver appointed in a divorce case after collecting a judgment proved to be futile. The debtor moved assets between personally controlled companies, thereby keeping them out of the reach of the ex-spouse. By petitioning the court to appoint a Receiver for all the debtor's business entities the judgment was ultimately collected. This is but one example of the power a Receiver possesses. Even more important than the choice of Receiver is the Order of Appointment. It must be carefully drafted so the Receiver has the explicit powers needed to effectuate the desired result. |
