Receivership in Real Estate

Receivership in real estate occurs when a court appoints a receiver to manage a property because the owner is unable or unwilling to fulfill financial obligations, such as mortgage payments or maintenance. The receiver operates the property to preserve its value, collect income, and ensure ongoing expenses are handled. This process helps protect lenders’ interests, often as a step toward recovering owed amounts or selling the property. Essentially, it’s a legal mechanism to temporarily take control of a distressed property, ensuring it is managed properly while resolving financial or legal issues.