Q&As
An LPA receiver is offering a property for sale in an auction. The LPA receiver has received an offer 30% above the guide price. Is the LPA receiver required to accept the offer pre-auction?
Published on: 25 February 2019
Duty of the receiver
The equitable duty owed by a receiver to a mortgagor when selling a property is the same as that owed by the mortgagee to a mortgagor (see Silven Properties Limited v Royal Bank of Scotland). When exercising power of sale over mortgaged property, a mortgagee is under a general duty to take reasonable care to obtain the true market value of the mortgaged property at the time they choose to sell it (see Cuckmere Brick Co Ltd v Mutual Finance Ltd).
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