The California Code of Civil Procedure Section 564 lists many of the traditional types of cases in which receivers may be appointed. They include, but are not limited to, the following: Preservation of a common fund or property in dispute and in danger of injury or dissipation;Rents, Issues and Profits (Real Estate);Substandard Housing – The Read More »
Can a receiver evict a tenant?
When a real estate receiver is appointed by the court, the receiver takes possession of the real property which is the subject of the receiver’s action. The receiver must comply with all of the same codes and ordinances that any other landlord or owner is subject to. If a tenant defaults on its lease, the receiver must analyze whether or not it is appropriate to enforce the terms of the lease including but not limited to evicting the tenant. Generally, the receiver would have the authority to evict a tenant if the tenant violated the terms of its lease.
The conditions upon which a receiver must determine whether or not it is appropriate to evict the tenant include nonpayment of rent, nuisance behavior, violation of lease provisions including failure to provide insurance, unauthorized or illegal use, and/or illegally holding over at the termination of the lease.
A receiver has an obligation to use reasonable business judgment in accordance with the authority granted pursuant to the order appointing the receiver to protect the interests of the property. This includes but is not limited to the need to evict tenants when it is appropriate to do so.
A receivership can be structured in a variety of ways based on the nature of the dispute, the goals and objectives of the parties, the type of asset(s) that will be placed under the control of a receiver as well as the ruling of the court. There are two core types of receiverships – a Read More »