Legal Question in Real Estate Law in California

I believe that I've written to you before, and addressed these issues.

1. A court order appointing a receiver is only one option set forth in Civil Code section 2938. There are cheaper alternatives in that chapter. The venue for appointment of a receiver to collect the rents is the county where the property is located where the tenants are residing. That's because the receiver actually goes and collects the rents from the tenants.

2. Appointing a receiver is expensive. As I pointed out before, rents collected by the current owner are not embezzled, because he has a right to those rents until you exercise one of the rights set forth in Civil Code section 2938. I believe that I sent you a private e-mail detailing my fees that I would charge if you insisted on going the expensive route.

3. A court appointment of a receiver is made in conjunction with foreclosure, whether that be a judicial action to foreclose, or a nonjudicial trustee's sale. You can't appoint a receiver and sit around forever. I also pointed out to you that your right to foreclosure would be subject to different time limitations.

As to Q1: Enforcement does not necessarily even mean going to court. You as the assignee have several options for enforcement of the assignment of rents upon default of the trustor-assignor, including going to court to have a receiver appointed, demanding that the trustor-assignor pay over the rents to you, or contacting the tenants with a written demand that the rents be paid directly to you. If you do go to court, filing in the venue (county and sub-district) where the property is situated seems more likely correct, although I did not find any statute or case stating as much (see, e.g., Code of Civil Procedure section 392 and 395, neither of which seems to answer the question).

As to Q2: I could handle this at a relatively low hourly rate and I run my clock and bill quite conservatively. I can and often do also handle cases in Southern California. However, you may be better off with a local attorney, and perhaps you'll find one who'll quote a flat rate, but the length of the case and time required to produce the desired result is extremely uncertain in matters of this kind, and I doubt you'll get many offers to handle this matter from start to finish for a fixed price.

Q3: No, you can invoke the assignment of rents upon the trustor's default without the necessity of foreclosure at the same time. Civil Code 2938(c), (f).

Further with respect to Q1, venue: Many deeds of trust specify where suits must be filed, and it is almost always where the financed real property is situated.