Receivership

Receivership is usually not an option we would choose unless we have to. I would like to know from your posters what conditions or situations receivership would/should come into play. and what would be the consequences resulting from it. I have heard receivership has a negative impact on home values. Also who would have the option (board/owners/judge) to invoke receivership?

NancyM2

I agree that motioning a court to appoint a receiver should not be taken lightly. If the POA is in control, the POA will likely pay for the cost of the receiver. Other remedies to persuade the board to do its job should be tried first. However, the governing documents may limit the remedies available to members.

If the board and the association are controlled by the developer and the developer is not living up to representations and is unresponsive, then motionion a court to appoint a receiver may be effective. The motion should include assigning the costs of the receiver to the developer. The developer may then seek a settlement, under the court's supervision, to live up to representations to avoid the cost of the receiver.