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A Law of Property Act receiver is appointed
by a lender who has a fixed charge over property under the
statutory power given in section 109 Law of Property Act 1925.
This is only the case if:-
1. the mortgage money has become due,
and
2. the mortgagee has become entitled
to exercise the statutory power of sale, where:-
2.1 default in repayment of a loan for
3 months after a notice requiring it, or
2.2 Interest unpaid for 2 months after
becoming due, or
2.3 Breach of the deed of the Act.
A Receivers powers are limited to collecting
rents and income, however the Receiver does have a duty to
keep property in repair and to insure.
There is case law on the above which
is Chatsworth Properties Ltd v Effiom. If you would like to
read this case, please click here.
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