Blog

A Rents and Profits Receivership assists in the enforcement of a mortgage, deed of trust, or related assignment. A rents and profits receivership commonly occurs when a property owner defaults on a mortgage and the lender seeks the appointment of a receiver to protect the collateral while foreclosure commences. Deeds of trust typically provide for the appointment of a receiver and contain an assignment of rents provision to collect rents and preserve the property. A court-appointed receiver has the right to take control over and possess all collateral property subject to the deed or mortgage as directed by the court. A receiver is appointed by the court to collect and secure rents and to preserve and protect the property during a foreclosure.

Hooray a judgment as been entered! However, just because a decision has been made, the battle is not over yet. Now the phase of enforcing and collecting on that judgment begins. In many cases, a judgment debtor will never willingly satisfy a judgment. For this reason, a post-judgment Receivership is a great judgment enforcement remedy that can help recover money to pay the judgment. A post-judgment Receiver is appointed by the court and, for example, may be granted the authority to manage and take possession of the judgment debtor’s real and personal property to collect, lease, repair, or sell as the court directs. Courts have interpreted that a post-judgment Receiver is in fact working for the benefit of the judgment creditor that sought the appointment of the Receiver.

In California, a Health and Safety Receivership is an effective option to resolve code enforcement issues with residential and commercial properties. Health and Safety Receiverships commonly deal with substandard or abandoned properties when property owners fail to comply with code enforcement or when there is a threat to the health and safety of residents or the surrounding community. While receivership may not initially sound like a resource for illegally-operating marijuana facilities, the illegal sale of marijuana likely constitutes a nuisance pursuant to the California health and safety code and can be a threat to the health and safety of the surrounding community and/or businesses. The Receivership Remedy can resolve complex issues that arise with rogue marijuana dispensaries as dispensaries become more and more common and the industry continues to inflate.

The partition remedy in California addresses disputes between co-owners of property. Any person with an interest in real property in California may bring a partition action against a co-owner. The partition remedy is necessary when co-owners cannot decide how to handle jointly-owned property. Properties subject to partition include, but are not limited to, single-family residences, vacation homes, investment properties, commercial buildings, apartment buildings, and parcels of land.

As stated in previous blog articles, Richardson "Red" Griswold is commonly appointed by courts in San Diego, Orange and Los Angeles Counties to act as partition referee to sell real estate that is at the center of a dispute between two or more co-owners. Typically, after co-owners are unable to resolve their ownership disputes related to their jointly-owned property, one co-owner will file a partition lawsuit and request that the judge appoint a partition referee to act as a neutral third party to sell the property and split the proceeds between the disputing co-owners (referred to as a "partition by sale," which is the most common partition remedy).

Richardson "Red" Griswold of Griswold Law, APC recently appeared on KCBQ 1170 AM to discuss his role as a court-appointed partition referee and court-appointed receiver. Below are clips from the recent radio appearance. For more information about the use of a partition referee in a partition matter or the function of a court-appointed receiver, please contact Red Griswold of Griswold Law, APC.