The fact that an LPA receiver can be appointed, but it’s not always a must that an LPA receiver has a right of sale. So this is a very important point and so the question is, where do you find that out?
Well, it’s a very complicated question, but it’s definitely a question that Immediate Bank Claims, which is one of our service lines that operate in this area can answer. We are here to help. If the LPA or Fixed charge receiver have the power of sale, only then will they have the ability to actually present the property to any buyers. If they don’t, all they have the power to do is literally collect the rentals and collecting the rentals from the property can be maintained. But then the question arises, what is done? The money, which is Monica?
It’s a separate topic for a separate day, but generally LPA receivers can only sell properties if the powers are expressly conferred. Now, if we go on from that, you have a property that you see for the file. It’s neither over there because the property most likely will be on the market through a local agent. If the properties on the market with a local agent, we assume the property has been signed up for sale. Now, signing the property out to sale is another question.
Does the LPA receiver have the power to put a prompt up to sell the property?
There is a big myth out there regarding LPA receivers and who they are acting for. So for that we can try and go back to Lakhi.
- If an LPA receiver has been appointed and given the right of sale, then how do you confirm that they have the authority to sell a property?
- How does the estate agent put that property up for Sale differ to this?
So the way it works is the bank appoints the receivers, the LPA receiver will then send out letters to the borrower of the property and notifying them of their appointment, and then they take the property over in terms of the keys or changing the locks and technically, then the contract allows them the power of sale, and if they are an insolvency practice or if they are surveying firm or a law firm, they go through certain protocols of appointing an estate agent or other forms of advertising to ensure they are looking to optimize the sale of the property.
If the process was transparent, when the LPA receivers are appointed, when selling the property whose interests are they looking to optimize?
So this is a slightly technical question. So in legal terms, they’re meant to be acting for the interest of the borrower, the person sent taking out the mortgage by an actual terms. They usually end up representing the bank because technically that’s the organization that’s paying them. So there is a complex event.
If the LPA receiver starts off acting for the borrower, but then it ends up that they act to the bank, how is that possible?
Unfortunately, that’s the way of the world. That’s what happens in this particular situation, because even though everything on paper point to what should be done in a particular way, the way things are actually orchestrated, it’s completely different on what’s on paper, and there’s very little precedence to set the matches stray either. So there isn’t anybody that’s really gone out and challenge this particular law to adjust it or improve it, or to ensure that it is done in a way that actually represents the borrower as opposed to the bank.
But I’m going to make you differ with you because I’m going to say doesn’t surely the confusion by in the definition of the agent now in the Law of Property Act 1925, the definition of agent is not, as you would expect of an agent who you are point to sell the property on behalf of you, but this is an agent who is in replacement of you. So the example is that he’s appointed as an agent for Party B. In normal circumstances, party breath is in control because Party A is the agent for Party B, and therefore the powers remain with Party B.
