IRRV Alert - week ending 24th March 2017
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Law of Property Act receivers
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Law of Property Act receivers
This Commons briefing paper provides a generalised overview of Law of Property Act receivers. In particular, it looks at how LPA receivers are appointed; their powers; and their role.
Jump to full report >>A Law of Property Act (LPA) receiver is a person appointed by the holder of a fixed charge over property (usually a bank or other commercial lender). Under the Law of Property Act 1925, a lender has the right to appoint such a receiver under section 101(1)(iii), once the debt falls into arrears. The Act confers very limited powers on the receiver. However, the receiver’s powers are typically modified and extended by express provisions in the security document.
LPA receivers are usually appointed by lenders with a view of selling the charged property or collecting income (e.g. rental income) from it to repay the debt. It is important to note that an LPA receiver will not necessarily be a licensed insolvency practitioner; the receiver might, for example, be a surveyor, valuer or accountant. Since LPA receivership is not an insolvency process, it is not regulated by the Insolvency Service. However, the receiver may be a member of a professional trade body.
Law of Property Act (LPA) receivership is a difficult area of law, particularly as regards the nature of receivership and delegation of powers to the receiver. This Commons briefing paper does not provide a definitive statement of the law but a generalised overview. In particular, it looks at how LPA receivers are appointed; their powers; and their role.
Commons Briefing papers CBP-7931
Author: Lorraine Conway
PDF, 262.23 KB)