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Receiverships Act 1993

17: Consent of mortgagee to sale of property

You could also call this:

"Asking the court to sell a property when the lender doesn't agree"

Illustration for Receiverships Act 1993

If you are a receiver and you need to sell a property, but the mortgagee will not agree, you can ask the court for help. The court can give you permission to sell the property if you can show that you tried to get the mortgagee's consent, but could not. The court will only give you permission if it thinks the sale is a good idea for the person who owns the property and their creditors, and if it will not hurt the mortgagee's interests too much.

The court will look at what is best for everyone involved before making a decision. You will need to prove that you made a reasonable effort to get the mortgagee's consent before asking the court for help.

The court can set conditions for the sale of the property if it decides to give you permission to sell it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM327724.

Topics:
Housing and property > Buying and selling homesHousing and property > Home safety and repairsMoney and consumer rights > Banking and loans
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16: Validity of acts of receivers, or

"What a receiver does is usually okay, even if they weren't appointed correctly"

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18: General duties of receivers, or

"Receivers must act honestly and fairly to help the people they work for."

17Consent of mortgagee to sale of property

  1. Where the consent of a mortgagee is required to the sale of property in receivership and the receiver is unable to obtain that consent, the receiver may apply to the court for an order authorising the sale of the property, either by itself or together with other assets.

  2. The court may, on an application under subsection (1), make such order as it thinks fit authorising the sale of the property by the receiver if satisfied that—

  3. the receiver has made reasonable efforts to obtain the mortgagee's consent; and
    1. the sale—
      1. is in the interests of the grantor and the grantor's creditors; and
        1. will not substantially prejudice the interests of the mortgagee.

        2. An order under this section may be made on such terms and conditions as the court thinks fit.