Realtor Receivers

A receiver is a neutral third-party custodian of assets who has been appointed by a judge to marshal, manage or liquidate assets.

For the most part, a receiver takes legal control of real or personal property to protect assets but he/she may also file claims on behalf of an entity or parties to recover wrongfully conveyed property.

While many receivers are appointed to aid in the collection of a judgment, most of our appointments as a Realtor receiver have been to liquidate, manage, marshal, or repair assets.

A judge appoints a receiver following the filing of an application by one of the parties with the court.  Typically, the court holds a hearing prior to the appointment.  Once appointed, the receiver files an oath of office, thereby becoming an officer of the court.

Unlike conventional Realtors, receivers are not an employee of any one party but rather officers of the court. They have a sworn duty to perform his/her duties with reasonable diligence.

A receiver must be a Texas resident who is qualified to vote.  The receiver must be a disinterested, unrelated party.  While it is not necessary that the receiver be a Realtor or an attorney, both are helpful.

It is important that the party appointed receiver understand the steps required to close and fund a property in receivership. Without basic knowledge of the process, the ability to file coherent motions, and the ability to set a hearing, the process can be difficult for all the parties involved.

Subject to court approval, a receiver is compensated for expenses associated with their service.  Receivers generally charge 20% of the sales price or whatever is collected, plus what the court would consider reasonable expenses.

Real estate receivers, on the other hand, are generally paid from the proceed of the sales, or 6%, plus a receiver fee. 

For our firm the receiver fee is $1,500 which covers court appearances, drafting motions, and the multiple trips to the courthouse; however, sometimes that fee can increase depending on the complexity of the case.

Subject to the control of the court, a receiver may: take charge and keep possession of the property; receive rents; collect and compromise demands; make transfers; and perform other acts in regard to the property as authorized by the court. (Tex. Civ. Prac. & Rem. §64.031)

The receiver is transparent in their process.  Sales price and proceeds, condition reports, and motions are all filed with the court, and there is a record that is readily available for general inspection.

Absent direction from the court, we allow for cooperating occupants to remain in possession of the property.  When this happens, the occupant will be given information about showing instructions.


Under no circumstances should occupying parties allow for entry of unscheduled appointments. Realtors, licensed with the Texas Real Estate Commission, understand the process by which appointments are made. In addition, an occupying party should never decline a showing. This is viewed as being uncooperative with the sale of the property.

The court gives direction on whether the property should be vacated by the current occupant. We are unable to allow for occupants to remain in possession of the property once the court has given a party direction to move. We will take the steps necessary to vacate the unit once such a court order is given.

The receiver will submit a plan to distribute the proceeds of the sale in accordance with a court order or a final divorce decree.

Sometimes the court may direct the receiver to place the funds in the court’s registry or hold the funds in their trust account. The proceeds of a sale and the distribution thereof are disbursed according to court order.  The court must conclude that the distribution is fair and reasonable.

True, many Realtor receivers will require hiring an attorney to draft motions and orders. This can drive up the costs of receivership. While we are not attorneys, we have vast courtroom experience as one of our parties served as eight years as a Justice of the Peace and is frequently appointed temporary Judge.

Frequently, there are personal items remaining in the property that a non-occupying party may wish to retrieve.  We understand the sentimental nature of personal belongings and will make every effort to assist the parties in retrieving items.Under no circumstances are we able to prevent the loss of beloved items or negotiate their ownership.  Should a court order outline specific, identifiable items to retrieve, we will make every effort to assist in their removal and return them to the proper party.

Personal property abandoned is donated or discarded. We may, if there are items of value, seek a purchaser for personal property. The proceeds of any sale will be placed in a trust account for disbursement according to court order.

A receiver is not required to give buyers a seller’s disclosure in accordance with Texas Property Code 5.008 (e)(1).

Sometimes a receiver is appointed to protect the equity in the property prior to foreclosure.  If the parties are aware of a pending foreclosure it is helpful to give notice to the receiver.

The banks are generally cooperative with a receiver once they are aware of the appointment.  A receivership stops a pending foreclosure.

The court gives direction on who pays the house payments and upkeep during the pendency of the sale.  If necessary (and provided there is enough equity) the receiver may front-load the cost of caring for the property.  Reimbursement would require an order from the court, at the time of closing.