The Liability of the Law of Property Act (LPA) Receiver


A Law of Property (LPA) Act Receiver is the agent of the mortgagor and is solely responsible for his acts and defaults.


They are also liable for the following:-


1. personally liable on any contract entered into in the performance of their functions


2. and on any contract of employment adopted by them in the performance of those functions.


However, the Law of Property Act Receiver may seek to exclude liability in the contract, and he  is entitled to an indemnity out of the assets and from his appointor.  However if the mortgagor is placed into liquidation or is made bankrupt this agency will cease and the LPA Receiver will become the agent of the mortgagee.