What is a Receivership?

A receivership is a court-appointed equitable remedy where a neutral third party takes possession of certain specified property to prevent deterioration, waste or dissipation in value of the property. This is generally done during the pendency of litigation or foreclosure proceedings.

A receiver was defined in the case of Pacific Independent Co. v. WCAB, 258 Cal. App. 2d 35 (1968): A receiver is a ministerial officer, agent creature, hand or arm of, and a temporary occupant and caretaker of the property for the court, and he represents the court appointing him, and he is the medium through which the court acts.