The effect of COVID-19 has led to a widespread economic downturn resulting in increasing commercial real estate loan defaults, leaving lenders seeking quick and efficient remedies to protect their collateral. In these instances, lenders may consider using court-appointed receivers as a means to protect and preserve the value of their collateral. The state of Florida has streamlined this option even more.

On July 1, the Uniform Commercial Real Estate Receivership Act (UCRERA) became effective under Florida law. UCRERA codified existing Florida law regarding commercial foreclosures. Before UCRERA, a receiver’s powers were provided in the court’s order without statutory authority. The powers granted to a receiver could vary widely from case to case, depending on the nature of the court order. Now codified as law, UCERERA gives receivers a wide range of powers without having to obtain court approval including the right to take possession of, control, and maintain receivership property. The act applies to receiverships for interests in commercial real estate and related personal property. The underlying party must bring an action, such as a foreclosure proceeding, in order for the court to implement UCRERA.

Appointment of Receiver