A property held in Receivership is turned over to a court appointed Receiver who assumes control of all the property subject to the receivership but does not take title to the property and cannot exercise control over property outside the territorial authority of the court. Any property that has already been transferred in a fraudulent sale designed to cheat creditors is beyond the reach of the Receiver; however, the Receiver has the power to initiate a lawsuit requesting that the court set aside the transfer. Any rights, such as liens or mortgages that others have on the property remain valid. Anyone in possession of property listed in the Receivership order can be compelled to turn it over to the Receiver. A refusal to comply, or interference with the Receivership, is punishable as a contempt of court.
The escrow process for a Receivership is a complicated process that requires an experienced Escrow Officer. With their many years of experience, Escrow of the West’s Escrow Officers are highly-qualified to handle the escrow process for properties in Receivership and can help you every step of the way.