Privately Appointed And Court-Appointed Receivers

Copyright 2008, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on Real Estate Mortgage Enforcement, October 2008

Instead of taking possession of the mortgaged property directly, the lender may arrange to have a receiver take possession of the property, collect revenues and pay expenses. A receiver can be appointed pursuant to the specific provisions contained in the mortgage or the lender may apply to the court for the appointment of a receiver.

Consequences of Appointing a Receiver

On the appointment of a receiver of the mortgaged property:

1. the duties of the borrower, including its officers and directors, over the mortgaged property are suspended;