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It’s one thing to know that court-appointed receivers are an important resource that the courts can use to address abandoned, blighted, and dangerous properties in the community. It’s another to understand how that happens.

Do you have concerns about a property in your neighborhood that seems to be deteriorating? Are you a city official who is trying to address dangerous properties in your town? Or perhaps you are an attorney representing a community that is trying to take care of distressed properties. There are clear signs that a property may be considered “distressed,” and there are many stakeholders who are concerned about these properties. If you are one of those concerned parties, this article will help you recognize the signs of a distressed property and how to address them.

Most of the time, restaurant investors, lenders, and co-owners like to think about the positives of their investments – not the potential failure of the restaurant. It’s also hard to imagine a business relationship going sour, but these things happen, too. Restaurants fail, business partnerships become bitter, and stakeholders find themselves in the tricky territory of deciding between taking big losses, filing for bankruptcy, or suing a business partner.

Receivership and bankruptcy are two legal options used to address business financial distress, but they are different in their nature, purpose, and scope.

A bank receivership was implemented in the collapse of Silicon Valley Bank, which has been an important topic of conversation since early March. That is when the California Department of Financial Protection and Innovation (CA DFPI) took possession of SVB and closed it.

When a property involves a deed of trust or mortgage, a rents and profits receivership may be needed for legal enforcement.