Receivership and its Role in Property Disputes

Receivers play a central role in helping resolve disputes involving commercial or residential property and are an option that must be highly considered for peaceful resolutions.

In matters involving property, there is always too much at stake for anyone to handle it lightly. This is why property disputes are often extremely complicated, and even when taken to courts can drag for a long time.

Whether it is a family fighting over the ownership of a real estate or a defaulted loan that necessitates the lender to take action, these disputes are never easy to resolve. While the practical solution, whenever there is a dispute touching on a piece of property, is going to court, the solution is never instant.

Unfortunately, the need to focus on the case at hand, and ensure that justice is served always results in the real estate being neglected. This is because neither of the parties claiming ownership ever takes it lightly for one of them to be running the property as the case proceeds.

The court can never ignore the conflict of interest and this often necessitates a call to action to find a suitable temporary solution. This is primarily because whether it is a family dispute, divorce, or secured creditors after their money, no one wants to take over a property with low value.

At the same time, the courts are always aware of the many factors that have to be carefully litigated before a decision can be made. There is, therefore, little or no alternative but to find a way that the property will be kept safe as the case proceeds.

In most instances, the ultimate solution is opting for receivership, whereby a neutral and professional party is given the mandate to manage the property in question. This mechanism for finding a balance point when no one can be given absolute ownership and management rights is practical in lots of instances.

The essence of appointing property receivers like Arizona Receivers is primarily to have a real estate specialist take possession and protect the assets for the benefits of all parties. Overly, the right to appoint receivers is statutory, and there have to be specific duties issued by the court in the receivership order.

This helps in creating the much-needed balance where no party gets to be at a disadvantage or feels underplayed. It does not help that there is a lot of mistrust and suspicion whenever a property is in question, and the receiver has to be above question.

However, by settling for seasoned receivers, such matters are quickly laid to rest as there is a record to hold onto by both parties. The best part is that by having the assurance of a team that has the capability to improve on the value of a property, compromises can readily be made for the greater good.

For cases between a lender and a borrower who has defaulted on payments, the role of leading Arizona receivers even becomes greater as these professionals assist in rapid dispute resolution. Since receivers are professionals with in-depth knowledge of managing different asset classes, they can easily develop a stabilization plan.

This is after performing the right financial and physical forensics to give them better perspectives of the potentials that can arise from the property. Once they start to implement the plan, and there are better returns from the property, the lender can be in a position to make compromises.

This then becomes a win-win situation for both parties as instead of the lender taking liability issues, they have a basis for negotiations with the borrower. On the other hand, for the property owner, they get to have the peace of mind that they will not lose the property and can find a suitable solution.

The most critical aspect of receivership is that the receiver has a duty of care and is answerable to the courts. All the responsibilities assigned to a receiver are analyzed continuously to ensure they deliver the best results.

They, therefore, must act with due care and maintain the highest levels of professionalism right from the start without breaching on their mandates. A receiver will, in turn, strive to maximize the value of the real estate assets while following the expectations of the court.

Even for cases where the property will ultimately be sold, the receiver will ensure maximum value from the sale. Not only will they play a crucial role in identifying potential buyers, but stabilizing the property will give it better market value.

Since receivership is not a new concept, there are already in place laws to govern the process by offering a standard set of rules. This gives both parties a platform that they can use to have the services tailored to their satisfaction.

Summary

Receivership is a suitable solution in most disputes involving property and is a platform for a peaceful resolution. Having seasoned a receiver working with you can be the much-needed remedy for success.