§ 125.046.Additional Remedies; Receiver

A receivership aimed at property that needs managing rather than closing.

Where a court in a Subchapter A proceeding determines that a person is maintaining a vacant lot, vacant or abandoned building, or multiunit residential property that is a common nuisance, it may on its own motion or that of any party order the appointment of a receiver to manage the property, or any other order necessary to abate the nuisance.

The three property types share a problem closure would not solve. A vacant lot cannot be closed; an abandoned building is already empty; and closing an apartment complex would evict residents who did nothing wrong.

A receiver may not be appointed for longer than one year, and shall continue to manage the property during the pendency of any appeal.

The court sets the receiver’s duties, pay, method of payment and payment periods.

Nine powers are listed, and they add up to running the property. Take control; collect rents; make repairs necessary to bring the property into compliance with minimum standards in local ordinances; make payments to maintain or restore utilities; purchase materials; renew existing leases; enter new ones; affirm, renew or obtain insurance; and exercise all other authority an owner would have.

The final power carries the chapter’s essential limit: except the authority to sell the property.

That is what separates this from a forfeiture. The owner keeps the property; a receiver runs it for a bounded period and hands it back.

Repairs and materials over $10,000 require prior court approval, so the owner is not presented with unlimited expenditure.

On completion the receiver files a full accounting of costs, expenses and income.