Receiver selling property without advertising it

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gearoidc

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A bank instructed a receiver to take control of an investment property on which the borrower was unable to keep up repayments.
Having sought "expert advice" the receiver decided against using the services of an estate agent and instead offered and sold the property to a buyer drawn from a "select list" of investors on the books of the receiver.

The receiver refused to entertain bids from other sources even though there were other interested parties.

The original owner of the property is now on the hook for the shortfall.
Does she have any grounds for appeal?

Any advice would be much appreciated.
 
Receivers and mortgagee should be reminded of the case Holohan v Friends Provident [1966]ir 1 which basically states that mortgagee and receivers must obtain the best price for properties that is reasonable available. You should write a registered letter to the receiver, who is your agent and ask for the sale price of the property and the bids received, why the property was not put up for sale by private treaty, whether the property was a portfolio sale etc.

If the investment property is a residential investment property, you should consult the residential property price register and look for the prices achieved for similar properties in the location of your investment property (sold at around the same time as your property), take into account condition, number of bedrooms etc. If there is a large discrepancy between the receivers price and other prices achieved you may well have a case. The receiver has a responsibility to the borrower to act in good faith, take reasonable precautions and exercise due diligence when selling a property.
 
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FC
Thanks for taking the time to reply. The property in question was sold within weeks. The decision on the part of the receiver not to advertise it or place it with an estate agent was never explained despite requests from the mortgagee to do so.
Of course what the law deems reasonable and what is actually reasonable .....
 
GearoidC
Your friend is the Mortgagor and the Bank is the Mortgagee. If the mortgagee asks for information on who bought the property the receiver is bound to tell them,after all, they appointed the receiver. If you were referring to your friend, the mortgagor, tell them to phone the bank and request the information but also do what I said in my original thread emphasising that the receiver is an agent for the mortgagor
 
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