A real property receivership is one of the most powerful remedies available in California civil litigation. When real estate is in danger of waste, foreclosure, or mismanagement — or when co-owners, partners, or litigants cannot agree on how to handle jointly-owned property — a California court can appoint a neutral receiver to step in and manage, preserve, or sell the assets under judicial supervision.
This guide explains how real property receiverships work under California Code of Civil Procedure § 564, when courts appoint them, what authority receivers have, and how receiverships differ from other court-appointed remedies like partition referees.
What Is a Real Property Receivership in California?
A receivership is a court-supervised process in which a neutral third party — the receiver — is appointed to manage property or assets while litigation is pending or to carry out a court’s judgment. Once appointed, the receiver becomes an officer of the court. As the California Court of Appeal explained in Security Pacific National Bank v. Geernaert (1988) 199 Cal.App.3d 1425, 1431, receivers “are not agents for any party involved in the lawsuit but are instead fiduciaries who, as officers and representatives of the court, act for the benefit of all persons interested in the property.”
In real property receiverships, the receiver takes control of real estate — whether a single-family home, apartment building, commercial property, or development site — and manages it on behalf of all interested parties until the underlying dispute is resolved.
When Can a California Court Appoint a Receiver? (CCP § 564)
Under California Code of Civil Procedure § 564, a court may appoint a receiver in a wide range of circumstances, including:
- Property in danger of loss or injury: When real estate is being wasted, damaged, or allowed to deteriorate and the owner is unable or unwilling to prevent it
- Foreclosure actions: When a mortgage or deed of trust is in default and the lender seeks to protect the collateral from further deterioration or loss of rental income
- Judgment enforcement: After a money judgment, when the judgment creditor needs to locate and liquidate the debtor’s real property assets
- Business dissolution: When a partnership, LLC, or corporation that owns real property is being dissolved and the parties cannot agree on how to handle the assets
- Insolvency: When an entity owning real property is insolvent or in imminent danger of insolvency
- Preservation during litigation: Whenever a court determines that appointment of a receiver is necessary to protect property interests while a dispute is litigated
How Is a Receiver Appointed in California?
A party seeking a receiver files a noticed motion in the California Superior Court — or, in emergency situations, an ex parte application — establishing that the statutory grounds under CCP § 564 are met. The court weighs the likelihood of harm to the property against the burden of a receivership, and if the grounds are established, issues an order appointing the receiver and defining the scope of their authority.
The receiver’s appointment order is crucial — it defines exactly what the receiver can and cannot do, what properties are subject to the receivership, and what court approval is needed for specific actions.
What Authority Does a Receiver Have Over Real Property?
The receiver’s powers are set by the appointment order and by statute (CCP § 568 et seq.), and typically include authority to:
- Take possession and control of the real property
- Collect rents, leases, and other income from the property
- Pay operating expenses, mortgage payments, property taxes, insurance, and HOA dues
- Hire and manage contractors, property managers, and service providers
- Enter into and enforce leases with court approval
- Make repairs and improvements necessary to preserve property value
- List, market, and sell the property pursuant to court order
- Evict tenants or licensees if authorized by the court
- File required reports and accountings with the court
- Appear in court on behalf of the receivership estate
Every significant action by a receiver requires court authorization, either in the appointment order or by subsequent motion. This judicial oversight protects all parties and ensures accountability.
Rents and Profits Receiverships in Foreclosure
One of the most common real property receiverships in California involves income-producing property in a lender-borrower dispute. When a borrower defaults on a mortgage secured by an apartment building, commercial property, or other income-producing real estate, the lender may seek appointment of a receiver to collect rents and preserve the collateral.
In a rents and profits receivership, the receiver takes over rent collection, pays operating expenses, and reports regularly to the court. This protects the lender’s collateral and ensures tenants have a responsible manager while the foreclosure proceeds. The receiver does not take sides — they act for the benefit of all parties with interests in the property.
Receivership vs. Partition Referee: When to Use Each
Both receivers and partition referees are neutral court-appointed fiduciaries, but they serve different purposes:
- A partition referee (CCP § 873.010) is appointed specifically in partition actions — disputes between co-owners about dividing or selling jointly-owned property. The partition statutes provide a complete procedural framework.
- A receiver (CCP § 564) can be appointed in a much broader range of situations — foreclosure, business dissolution, judgment enforcement, any case where property needs preservation during litigation.
In a contested co-ownership situation, a partition action with a referee is usually the right vehicle. In a foreclosure, business dispute, or emergency preservation situation, a receivership under CCP § 564 is typically more appropriate.
Receiver Compensation and Fees
Receiver fees are paid from the assets subject to the receivership and must be approved by the court as reasonable. The receiver submits periodic fee requests, which all parties may object to. Courts scrutinize receiver fee requests carefully. An attorney-receiver who can handle required legal filings in-house typically reduces the overall cost to the estate compared to a non-attorney receiver who must hire outside counsel for every court filing.
Amy Harrington: Court-Appointed Receiver in California
Amy Harrington serves as a court-appointed receiver in California, with experience in real estate receiverships throughout the San Francisco Bay Area and statewide. As a licensed California attorney since 2005 with deep expertise in real property law and fiduciary obligations, she brings a comprehensive skill set to every receiver appointment.
If you are an attorney or party in a California real estate dispute that may require a receiver, contact Harrington Law P.C. at 415-558-7700 or reach out here.
This article is for general informational purposes only and does not constitute legal advice.