Where Every Big Bank Stands On Wednesday's Interest Rate Announcement

Receivership

Understand receivership in Canadian real estate: when it’s used, how it works, and what it means for borrowers, lenders, and distressed assets.

Receivership

June 16, 2025


What is Receivership?

Receivership is a legal process where a court or secured creditor appoints a receiver to take control of a borrower’s assets, such as property or businesses, when the borrower defaults on their obligations.

Why Receivership Matters in Real Estate

In Canadian real estate and finance, receivership is commonly used when lenders seek to recover debt by managing or selling assets, especially during insolvency or foreclosure scenarios.



A receiver may:
  • Operate, lease, or sell the property
  • Collect rental income and pay operating expenses
  • Protect asset value while enforcing creditor rights
  • Report to the court or creditor on asset disposition



Receivers are usually court-appointed professionals (often accountants or legal trustees).



Understanding receivership helps investors and creditors navigate distressed property scenarios and asset recovery.

Example of Receivership in Action

After the borrower defaulted on their commercial mortgage, the lender obtained a court order to place the property into receivership for sale.

Key Takeaways

  • Occurs when an asset is controlled by a receiver
  • Used to recover debt during default or insolvency
  • May involve court oversight
  • Receiver manages or sells the property
  • Protects lender interests and asset value

Related Terms

Additional Terms

Land Banking

Gentrification is the process by which a traditionally lower-income neighbourhood undergoes revitalization and attracts higher-income residents,. more

Land Assembly

Land assembly is the process of acquiring and consolidating multiple adjacent parcels of land under one ownership, typically for redevelopment or. more

Joint Venture

A joint venture in real estate is a partnership between two or more parties to develop, own, or operate a property or project, sharing risks, costs,. more

Infill Development

Infill development is the process of building new housing, commercial buildings, or amenities on vacant or underutilized land within existing urban areas.. more

Inclusionary Zoning

Inclusionary zoning is a municipal planning tool that requires or incentivizes developers to include a percentage of affordable housing units in new. more

Impact Fees

Impact fees are charges levied by municipalities on new developments to offset the cost of additional public infrastructure and services required by. more

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