Sale of Nuisance Property: Procedure for Court-Ordered Receivership Sale

nuisance property


Receivers are often appointed by courts to revitalize and potentially oversee the sale of nuisance properties. 

What Is a Nuisance Property

Nuisance properties are those that are in some form of distress due to being neglected or abandoned. These properties often present health and safety concerns, code violations, and even neighborhood blight. 

Signs of a nuisance property can include:

  • Abandonment
  • Severe disrepair 
  • Dilapidation
  • Safety code violations
  • Criminal activity 

According to California Health & Safety Code 17980.7, the court may appoint a receiver to take control of a nuisance property when the owner has failed to comply with notices and orders sent with regard to violations at the property. When a receiver is appointed, they will take the necessary steps to rehabilitate the property and may then sell it in accordance with California Civil Code 568.5 upon approval from the court.  

What Are the Benefits of a Court-Ordered Sale via Receivership?

Health & Safety Receiverships are powerful tools that can be used to help reduce the number of blighted properties while also revitalizing communities and increasing property value. Instead of these properties becoming magnets for criminal activity and health and safety violations, they are fully rehabilitated and potentially transferred to buyers who can invest in the property and further help improve the neighborhood. 

There are scenarios where it is not feasible for a receiver to undertake the rehabilitation of a nuisance property under court-ordered receivership control. This may be due to financial constraints. In such a situation, a court may direct a receiver to conduct an as-is sale to a vetted buyer who has the financial means and track-record to take on the rehabilitation post-sale under the supervision of the receiver and the court. Further, the buyer may be obligated to enter into a compliance agreement with the city to ensure a clear plan and timeline for addressing the nuisance conditions once and for all.

Learn More About Health & Safety Receivership Property Sales

Richardson “Red” Griswold of Griswold Law has served as a court-appointed receiver in hundreds of distressed property cases in California. We have substantial experience overseeing court-ordered property sales that take into account the interests of all involved stakeholders. 


To learn more about distressed property receiverships, download our Abandoned Property Receivership whitepaper. 


Download the Whitepaper


If you have further questions, please don’t hesitate to contact us and schedule a time to talk. 


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