Receivers are a neutral party, which may be an individual or business, appointed by a court to preserve and operate real property and other assets which are currently the subject of litigation. When the court rules and determines how to divide or sell the discussed assets, the receiver no longer has any duties to fulfill after turning over records to the court.
A receiver maintains control over funds used to maintain the property, pay all associated expenses, and provide accounting records to both parties to the litigation on a monthly basis. Bank accounts, taxes, insurance, code violations and employee management may all be tasks performed by a receiver.
Receivers may work on cases involving Civil Litigation, Family Law, Probate, Post-Judgment, Housing & Real Estate and Regulatory cases. Civil Litigation may require the receiver to control assets of value that are at risk of dissipating during court hearings, trial or an appeal. In this case, the receiver must maintain the assets until ownership is determined by the court.
Even though a ruling is issued, a receiver may maintain control over defendant assets if a post-judgment appeal is expected. The receivership will freeze assets and prevent loss during the sometimes lengthy legal process in Regulatory (fraud & white collar crimes) cases, and it may also attempt to discover assets or retrieve them as instructed by the court.
Family Law cases could provide for a receiver to sell assets that are to be split between the two parties in a divorce, or also oversee post-judgment requirements for child support or alimony. Housing & Real Estate (non-commercial) cases will typically call for a receiver that has some type of practical or professional experience in property management.
Income property such as apartment buildings or rental homes will also include considerations for the current or future tenants. Although the receiver is generally not allowed to make capital improvements to the property, any health or safety risk must be remedied. Necessary insurance must be transferred or obtained, and taxes will also be paid by the receiver through estate funds.
Receivers will take ownership of bank accounts and investments, and use the borrower's tax identification number to hire and pay related employer taxes for workers required for the property. Of course, a receiver may also hire a third party management company rather than managing the property on their own accord.
Receivers are typically attorneys, CPAs, property managers or other parties with extensive experience in managing assets and real property for others.
