As a consequence of our economic times, a major growth area in real estate property management is court appointed receivership services. The Property Management Group at Wakota Commercial Advisors has considerable experience acting in this capacity.
Minnesota Statutes give the courts authority to appoint a third-party to oversee a mortgaged real estate asset in dispute. In most cases, a receivership results when the mortgage lender files for default/ foreclosure leaving the real estate asset in a vulnerable position especially where tenants, leases and rents are concerned. The primary objective of the receiver is to preserve and protect the physical and fiscal asset which includes lease administration, property maintenance and accounting controls. Subject to the court order, the receiver responsibilities may include:
- Third party independent control as a fiduciary of the court.
- Possession and preservation of the asset.
- Supervision and direction of daily and on-going activities of the property.
- Full review of all contractual services.
- Bidding and awarding of service contracts and independent outside services.
- Full accounting of all income and expenses.
- Authorization, control and payment of payables, with restructure of payable stream if necessary.
- Understanding of institutional requirements, policies and goals.
- Specific recommendations for extraordinary maintenance requirements.
- Proactive management to establish the confidence of tenants and others.
- Reports tailored to the needs of the court and secured creditors.
- Full cooperation after the receivership period to continue stabilization of any tenant base and property operations.
Once appointed, Wakota Property Management Group will immediately secure the property, stabilize tenant and vendor relations and retrieve property records from the owner/manager. Once operational, maintenance and accounting procedures are established, detailed reports are given to the court and the parties in interest.
