Conveyancing and Lawof Property Act 1886 · 2020 Revised Edition · Part 4 · Mortgages
29. Appointment, powers, remuneration and duties of a receiver
Feedback & supportA mortgagee entitled to appoint a receiver under the power in that behalf conferred by this Act shall not appoint a receiver until he has become entitled to exercise the power of sale conferred by this Act, but may then, by writing under his hand, appoint such person as he thinks fit to be receiver.
mortgagee
“mortgagee” includes any person from time to time deriving title under the original mortgagee;
The receiver shall be deemed to be the agent of the mortgagor; and the mortgagor shall be solely responsible for the receiver’s acts or defaults, unless the mortgage deed otherwise provides.
mortgagor
“mortgagor” includes any person from time to time deriving title under the original mortgagor, or entitled to redeem a mortgage according to his estate, interest or right in the mortgaged property;
The receiver may demand and recover all the income of the property of which he is appointed receiver, by action, distress or otherwise, in the name either of the mortgagor or of the mortgagee, to the full extent of the estate or interest which the mortgagor could dispose of, and may give effectual receipts accordingly for the same.
A person paying money to the receiver shall not be concerned to inquire whether any case has happened to authorise the receiver to act.
The receiver may be removed, and a new receiver may be appointed, from time to time by the mortgagee by writing under his hand.
writing
“writing” includes print; and words referring to any instrument, copy, extract, abstract or other document include any such instrument, copy, extract, abstract or other document being in writing or in print or partly in writing and partly in print.
The receiver out of any money received by him may retain for his remuneration, and in satisfaction of all costs, charges and expenses incurred by him as receiver, a commission at such rate, not exceeding 5% on the gross amount of all money received, as is specified in his appointment, and if no rate is so specified, then at the rate of 5% on that gross amount.
The receiver shall, if so directed in writing by the mortgagee, insure and keep insured against loss or damage by fire, out of the money received by him, any buildings, effects or property comprised in the mortgage, and being of an insurable nature, whether the same are affixed to the freehold or not.
mortgage
“mortgage” includes any charge on any property for securing money or money’s worth;
The receiver shall apply all money received by him as follows:
in discharge of all rents, taxes, rates and outgoings whatever affecting the mortgaged property;
in keeping down all annual sums or other payments, and the interest on all principal sums, having priority to the mortgage in right whereof he is receiver;
in payment of his commission, and of the premiums on fire, life or other insurances (if any) properly payable under the mortgage deed or under this Act, and the cost of executing necessary or proper repairs directed in writing by the mortgagee; and
in payment of the interest accruing due in respect of any principal money due under the mortgage,and shall pay the residue of the money received by him to the person who, but for the possession of the receiver, would have been entitled to receive the income of the mortgaged property, or who is otherwise entitled to that property.