Blog

The National Vacant Properties Campaign held its annual conference in Cleveland, Ohio last week. There to explain the positive impact that receiverships can have on vacant/abandoned properties in cities across the nation was Mark Adams of the California Receivership Group. Mr. Adams is a friend and mentor of mine.

As foreclosures continue flowing and banks lose additional control of their REO portfolios, more and more vacant properties in substandard condition will turn up in neighborhoods within San Diego County and the nation at large. Cities within San Diego County have taken promising steps over the years to beef up code enforcement strategies and neighborhood improvement initiatives, particularly in the City of Chula Vista and the City of San Diego. Attempts to stave off vacant/substandard/nuisance properties, coupled with an aggressive penalties system, can solve half the problem. However, once the property has been identified as a "nuisance" and the fines/penalties/charges have been issued, what next? Who ensures the property will be cleaned up and brought within compliance with the applicable code? The answer: court-appointed receivership.

Receiverships are commonly initiated in courts across California. Under a receivership, the receiver undertakes custodial responsibility over another’s property, assets and rights. The extent of the receiver’s duties and powers are stated in the appointment documents, be it a court order, a statute or private agreement.

First, this is not a football term. In the legal universe, a receiver can be appointed by a government regulator pursuant to a statute, appointed by a court or appointed privately. Under a receivership, the receiver undertakes custodial responsibility over another’s property, assets and rights. The extent of the receiver’s duties and powers are stated in the appointment documents, be it a court order, a statute or private agreement. Receiverships are most commonly utilized for: interim corporate management, marital dissolutions, fraudulent transfers, criminal profiteering, white collar crime and real property disputes.