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Ask Buachaill Your Own Question
Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10722
Experience:  Barrister 17 years experience
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The bank has appointed a receiver to dispose of property

Customer Question

the bank has appointed a receiver to dispose of property that is mortgaged. the property has a mix of land and 2 townhouses. we have a purchaser agreement in place for one of the townhouses. the bank has indicated that the receiver is in charge of the process and hence the sale must go through them. my concern is that in so doing the sale might be lost. what are my options
Assistant: Where are you located? It matters because laws vary by location.
Customer: barbados
Assistant: Has anything been filed or reported?
Customer: nothing with the court
Assistant: Anything else you want the solicitor to know before I connect you?
Customer: the way the loan is structured there is one account for the principal and another for the interest. the sale of the townhouse would pay off the principal. the interest would remain
Submitted: 15 days ago.
Category: Law
Expert:  Buachaill replied 15 days ago.

1​. Be aware that under Barbados and English law, there is both a legal and an equitable duty placed on the receiver, and its principal, the bank to ensure that the best price possible is realized for a property sold by a receiver.

Expert:  Buachaill replied 15 days ago.

2​. This means, that if the sale is lost by the receiver, you can refuse to pay the diminution in value for any subsequent sale as the receiver will have acted in breach of their equitable duty of good faith to obtain the best price possible.

Expert:  Buachaill replied 15 days ago.

3​. Essentially, this means that the receiver must affirm the sale and adopt if for themselves.

Expert:  Buachaill replied 15 days ago.

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