Receiverships for Distressed Commercial Real Estate: Lender, Servicer, and Borrower Concerns

Process and Key Provisions in Order Appointing a Receiver; Pros and Cons of Receiverships

Recording of a 90-minute premium CLE video webinar with Q&A

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Conducted on Tuesday, August 17, 2021

Recorded event now available

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Course Materials

This CLE course will guide counsel for lenders, borrowers, and loan servicers on seeking or opposing the appointment of receivership for distressed commercial real estate. The panel will also explain how lenders, borrowers, servicers, and prospective buyers can navigate the receivership process.


The economic fallout from COVID-19 has resulted or likely will result in defaulted loans and distressed real estate and the need for court-appointed receiverships. Lenders and servicers appoint receivers to manage, market, and sell distressed assets during or instead of foreclosure. Receiverships offer several benefits to lenders and servicers, primarily by providing an opportunity to stabilize and maximize the value of the subject property in a relatively quick and cost-effective manner. But, there are several factors to consider.

The lender must be familiar with the process for appointing the receiver, determine who the receiver will be, and demonstrate to the court that the appointment of a receiver will benefit the management of the property and preserve value.

Many states do not have statutes that define what powers a court-appointed receiver may have, so the order should contain all the powers and responsibilities of the receiver. Key provisions include the ability to manage and control property, collect rents, and pay all expenses incurred with managing the property, as well as the power to hire the management company and the leasing agent. The receiver should also be indemnified for any actions taken in compliance with the order.

Listen as our authoritative panel explains the factors that counsel for lenders, borrowers, and servicers should consider when evaluating whether to seek or oppose a receivership for distressed commercial real estate. The panel will also explain strategies for navigating the receivership process.



  1. Receivership overview
    1. Receivership defined
    2. Types of receiverships
    3. Appointment of the receiver and the receivership order
    4. The receivership process and reporting requirements
    5. Factors to consider when evaluating whether to seek or oppose a receivership
  2. Common legal and business considerations with receiverships
    1. Receivership fiduciary obligations and liabilities
    2. Shelter from lender liability
    3. Borrower bankruptcy issues
    4. Risks to the prospective buyer: no representations or warranties on the property, dealing with a defaulting borrower, title issues, etc.
    5. State court versus federal court: pros and cons
    6. Managing costs of receiverships


The panel will review these and other notable questions:

  • What factors must be considered by lenders, borrowers, and servicers when evaluating whether to seek or oppose a receivership?
  • What are the critical provisions for any receivership order?
  • What are the benefits and risks to prospective buyers considering purchasing a property through a receivership?


Ormond, Richard
Richard P. Ormond


Mr. Ormond has over 20 years-experience that includes business law, real estate, banking, receivership law, cannabis...  |  Read More

Silverman, Mark
Mark A. Silverman

Dykema Gossett

Mr. Silverman is a co-team leader of the firm’s Commercial Mortgage-Backed Securities Special Servicer Group and...  |  Read More

Tarshis, Matthew
Matthew S. Tarshis

Frontline Real Estate Partners

Mr. Tarshis is responsible for leasing the company’s owned portfolio consisting of retail properties. In addition...  |  Read More

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