Receiverships

Find someone to fill that pesky vacant unit! A Receivership is an equitable remedy that permits an Association to collect delinquencies by renting the property through a third party, also known as a Receiver.

In a Receivership, a court approves a Receiver to act as a landlord, or property manager of a vacant or tenant occupied property. The Receiver ensures the property is ready to rent, then finds a tenant.

The tenant pays rent. The rent goes to paying the Receiver, then to the delinquency, then to any other dues owed. Lastly, whatever remains goes to the homeowner.

A Receivership is the best solution for when there is a unit/property in your Association meets the following criteria:

• First and foremost, the property must be Vacant or occupied by a someone without an ownership interest. A court will not permit Receivership if the property is occupied by someone with an ownership interest because that would require the evicting of the homeowner.

• The property must in a rentable state or must be reasonably brought into a rentable state. A court will not permit a Receivership if the property is in such a state that it would be unreasonable for a person to safely occupy the property.

If the property meets the above standards, we may petition a court to grant a Receivership for the property.

While the time frame for a Receivership depends in which county the case is filed, generally, a Receiver can have a tenant in the vacant property a month after the action is initiated.

A Receivership is a quicker and cheaper alternative to foreclosure. Also, the homeowner does not lose ownership of the property, and for this reason, courts are generally more willing to grant a Receivership than a foreclosure.

Do you have any Receivership questions? Contact us at:

info@westernlawgroup.com or give us a call at: (720) 542-8724