Nuisance properties are a problem across all communities–decreasing property values, increasing crime rates, and posing a risk to the health and safety of property occupants and others in the neighborhood.
In some situations, such as a property that has accumulated numerous unresolved code violations or a property that has become condemned for health or safety reasons, community stakeholders may need to step in to address the problem. One of the resources available to these stakeholders in California is the receivership remedy for nuisance properties.
Nuisance properties encompass a wide range of issues and conditions that can adversely affect neighborhoods, communities, and the well-being of residents. Some examples of nuisance properties include:
A receiver is a neutral third-party individual, often a lawyer, appointed by a court to take control of assets, business affairs, and/or real property and manage it in a way that fulfills the court’s orders.
A receiver’s duties are defined by the parameters of the court order, but they typically include:
When appointed, a receiver carries out the orders of the judge. This benefits the community because the receiver can address and fix unsafe conditions at the property, thus reducing the risk of negative risks for the community as a whole.
A person or entity can’t simply hire a receiver to take over a property. Rather, the process involves getting a court order.
The parties who can propose a receiver include:
What is required to have a receiver appointed over a property of concern?
The process may vary from one situation to the next, but there is a typical timeline that most receiverships follow.
The first step is seeking legal advice. An experienced receivership attorney should know the ins and outs of California’s legal system, including when a receiver can be appointed. They will also be able to explain how likely it is that a judge would side with the plaintiff and appoint a receiver.
Even if a receivership is not an option, an attorney should be able to provide you with guidance on other alternatives to address the nuisance property.
When filing a lawsuit, you will need to prove that the appointment of a receiver is appropriate. It is essential that the subject issues are documented at the property and identified as to why those issues pose a health and safety risk. It is recommended to demonstrate that alternative methods of resolution have failed. Finally, you will also need to prove that you have legal grounds to bring this claim against the property owner.
When your case is prepared, an action must be filed with the appropriate court, outlining the justifications for the receivership, the specific powers and duties you want the receiver to have, and details about the subject property.
In general, all interested parties with a stake in the property (i.e. owner(s), lender(s), and other relevant stakeholders) will need to be given proper notice under the law.
There will likely be a court hearing where your case for appointing a receiver will be presented and possibly opposed.
Typically, you have the opportunity to nominate a specific receiver to the court. It is important to nominate a receiver who is experienced, knowledgeable, professional and cost-efficient.
These step-by-step instructions only take you to the point where the receivership begins. After the appointment is ordered and the scope of the receivership is determined, it will be time for the court-appointed receiver to get started.
The receiver will routinely update the court regarding its steps and progress toward addressing the nuisance property. Some tasks or recommendations of the receiver may require additional court approval, such as borrowing funds to pay for the rehabilitation or potentially selling the property to a qualified buyer.
Tackling the challenges posed by nuisance properties may seem overwhelming, but the receivership remedy is a powerful tool to protect your community, enhance public safety, and preserve property values in your neighborhood.
At Griswold Law, we understand the complexities of the receivership process, and we are committed to guiding you through each step. Richardson “Red” Griswold and his team have been appointed over 200 times by California courts, and the purpose of the majority of those appointments has been to address nuisance properties.
Whether you are a concerned neighbor, a government entity, or a representative from an HOA, please don’t hesitate to reach out to our experienced team of receivership professionals. We can provide the legal expertise needed to assess your unique situation, explore the viability of a receivership, and pursue the necessary legal actions to resolve this problem in your community.