Receivership Provides a Long-term Solution for a Blighted Property
Before Health and Safety Receivership
After
Health and Safety
Receivership
It was almost impossible to see this home from the street. Overgrown, dry, and dead vegetation surrounded the house, closing in on the structure. Junk and inoperable vehicles crowded both the front and back yards, and the property was out of place in the clean, quiet neighborhood. But the visual blight was not the only issue that this property presented to this community. With an elementary school a couple of blocks away and a park directly opposite the property, the house presented an attractive nuisance to curious children and transients. The structural inadequacies and the lack of any defensible space made it extremely dangerous if anyone did go onsite, especially if that person started a fire–which we’ve found to be unfortunately more common than one may think.
Photos of the property prior to receivership showing the extremely overgrown vegetation surrounding the home
California Receivership Group Selects a New Buyer for this Home Based on their Ability to Quickly Remedy the Conditions and Maintain the Home Moving Forward
With the owner of this property defaulted from the case and little value in the property that could be used to fund receivership work, we determined that the best course of action would be to sell the property to a buyer with the wherewithal and commitment to turning this home around. We received multiple offers, which we presented to the Court. However, the highest offer was not the one we recommended. Instead, we opted for an offer that was slightly lower since this proposed buyer was a licensed contractor with a track record that proved they were an experienced and respected local investor and landlord. Any sale of a property in receivership has to be approved by a court and CRG has to make the case for why they believe one buyer should be chosen over another.
When CRG is unable to fund remediation work and a court determines that a sale is the best course of action, a property is sold as-is. In order the ensure that the health and safety code violations are in fact abated, buyers sign an agreement to remediate issues within a set period of time after the close of escrow, and CRG remains in place as receiver until local code enforcement inspectors sign off on the removal of all violations. As demonstrated in this case, all buyers are screened by CRG before a sale is recommended to the court. Sometimes the best buyer of a property with nuisance conditions is not the buyer with the highest offer.
