Joint receiver role?

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michaelg

Registered User
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Stupid ignorant question, I'm a bit confused over what a receiver is and does, if a bank appoints a receiver on a property, does the receiver have the legal weight to take the property ? What's their role, don't they need a court order to take land ?
 
A friend has told me that without a court order , a letter of receivership means nothing ?
 
There's a clause in your mortgage agreement which allows the Bank to appoint a Receiver. He will take over the rental income and can put it up for sale in the long run if the bank wishes. As for when they get a buyer - I'm not sure what happens here. Presumably they will need an order for repossession at that stage.
 
Just to clarify. While a lot of mortgage agreements have a clause in the mortgage agreement there are quite a number that do not have. You need to read the particular mortgage agreement to be sure or get an advisor to do so on your behalf if you feel you might not understand it.
 
A receiver can take over the mortgaged property and sell it without any court order provided the power to appolnt is part of the mortgage agreement.
 
44brendan said:
A receiver can take over the mortgaged property and sell it without any court order provided the power to appolnt is part of the mortgage agreement.
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Hi 44brendan

Out of curiosity - do you happen to know if the mortgagee would still need to sign any paperwork when the house has been sold? I.e Deed of Transfer
 
The mortgagee is the lender. perhaps you mean the mortgagor! A receiver acts as agent for the mortgagee and can reposess and sell the property without any need for documentation other than the original loan agreement which gives him this right!
 
44brendan said:
The mortgagee is the lender. perhaps you mean the mortgagor! A receiver acts as agent for the mortgagee and can reposess and sell the property without any need for documentation other than the original loan agreement which gives him this right!
Click to expand...

Yes sorry that is what I meant ! Thanks for the advice.
 
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