Legal Question in Real Estate Law in California

The powers of a receiver are as set by statute, and further limited by the court order appointing the receiver and any subsequent orders the court shall make. See Code of Civil Procedure sections 568 to 570 regarding statutory powers. The receiver is entitled to possession and control of the property. "The receiver has, under the control of the court, power to bring and defend actions in his own name, as receiver; to take and keep possession of the property, to receive rents, collect debts, to compound for and compromise the same, to make transfers, and generally to do such acts respecting the property as the court may authorize." CCP 568. If authorized by court order, a receiver may sell real or personal property in the receiver's possession.

Ordinarily, the receiver is only obligated to preserve the receivership property and not to injure the property. If the property consists of residential rental property, however, the receiver has an affirmative duty to notify the court of the existence of an order or notice by public authorities under specified provisions of law with which the receiver cannot comply within the time provided by the order or notice. In that event, the receiver may be obligated to correct the deficiencies and must seek court authority to expend funds or, if there are sufficient funds, to request further instructions from the court. If there are insufficient funds to effect the repairs, the court may terminate or limit the period of the receivership, or provide other orders or instructions.

These are broad powers, and the receiver acts rather like an attorney in fact under a power of attorney. As I understand it, the receiver does not actually sign the homeowners name, but rather, signs as the receiver of the property, since under a receivership the owner has essentially lost power and control and could not legally sell, lease, encumber, etc. the property himself, all authority having passed to the receiver.

Receiverships result from lawsuits and are considered drastic provisional remedies. If the homeowner here is engaged in a code-enforcement struggle, he is about to learn the meaning of the old expression "you can't fight City Hall."