When Would a Law of Property (LPA) Act Receiver be Appointed
A Law of Property Act Receiver (LPA Receiver) is appointed by a lender who has a fixed charge over property under the statutory power given to that lender in section 109 of the Law of Property Act 1925.
Such an appointment of a Law of Property Act (LPA) Receiver may only take place 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 there has been default in repayment of a loan for 3 months after a notice requiring it, or
2.2 Interest remains unpaid for 2 months after becoming due, or
2.3 there is another breach of the Act.
A Law of Property Act (LPA) Receivers powers are limited to collecting rents and income, however the Law of Property Act Receiver does have a duty to keep property in good repair and to insure the property.
There is an interesting case on the above which is known as Chatsworth Properties Ltd v Effiom which you can read by following the link.
Obtain a copy of the Law of Property Act 1925 to fully understand when a Law of Property Act (LPA) Receiver may be appointed.
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