Health and Safety Receiverships can successfully rehabilitate distressed properties within a community. A receivership is a legal and equitable remedy that allows for the possession and control of property by an unbiased third party referred to as a Court Appointed Receiver. A Court Appointed Receiver is a neutral third party appointed by the Court to take temporary control over substandard properties that are subject to a lawsuit. A receiver is not an advocate for any party but instead is an advocate for the court to protect and preserve the property. Once the court appoints a receiver, the property is under the direct control of the court through the receiver. A receiver’s authority is derived directly from the appointing court. The receiver is responsible for the general repairs and maintenance to the property and for ensuring that the property is brought into compliance with State and local codes.
Once appointed by the court, a receiver must take an oath to faithfully perform all duties of the receivership. A receiver may execute the oath before a notary public, sign under penalty of perjury, or by affirmation. Most commonly a receiver will prepare an oath as a declaration and sign it under penalty of perjury. A receiver must file the Oath with the appointing court avowing to faithfully discharge the duties of a receiver and obey all orders of the court before entering upon the duties of a receiver. A receiver must also, with surety approved by the court, execute an undertaking and obtain a bond in such sum as the court orders and file the bond with the court. The oath and bond must be executed before the receiver commences the receivership duties. Failure of a receiver to implement an oath divests the receiver of the authority to act as the receiver making the receiver’s activities unenforceable. The actions of a receiver only bind the receivership property if first authorized and approved by the appointing court.
The appointment of a receiver can alleviate stress caused by problem properties within a community and is a valuable remedy under California law. A receiver is an agent for the court to bring substandard properties into compliance. Richardson “Red” Griswold of Griswold Law, APC is regularly appointed by courts across the State of California to act as a Receiver to remedy substandard properties. To learn more about receiverships, please visit www.griswoldlawca.com or contact the office at (858) 481-1300.
