Entering building with sun ray shining through.

Do receivers owe duties to bankrupt mortgagors?

Published on 27 January 2016

The Court of Appeal has recently considered whether an LPA Receiver owes a duty of care to a bankrupt mortgagor in connection with the way the Receiver deals with the mortgaged property.

The claimant, Mr Purewal, owned a buy to let property in Birmingham. The property was mortgaged to the Bank of Scotland, but in early 2009 the claimant defaulted on the mortgage and the Bank appointed the defendants as LPA Receivers over theĀ property.