In short: Yes, when the loan documents already give the lender those rights. In a commercial foreclosure of a half-built subdivision, the Third District on March 7, 2012 affirmed a receivership order that let the receiver complete construction and manage the property, because the powers matched what the borrower had already agreed to in the loan documents.
The Facts
TotalBank lent about $32 million to Crestview II, Ltd., a developer, for a residential development in Miami-Dade County. The loan included a construction loan agreement that allowed the bank to complete construction if the borrower defaulted. The mortgages also allowed the bank to seek a receiver on default.
After the borrower defaulted, the bank sued on the notes and guaranties, sought enforcement of an assignment of rents, and moved to foreclose. It asked for a receiver. At the evidentiary hearing, the evidence showed the property was worth far less than the debt, real estate taxes had not been paid since 2008, federal tax liens existed, the property showed damage and neglect, and the homes were roughly 80 percent complete.
The trial court appointed a receiver. The borrowers appealed only parts of the order: provisions requiring turnover of records and property, maintenance and repairs, completing construction, handling service contracts and permits, and dealing with a community development district.
The Decision
The Third District affirmed. The borrowers argued these powers went beyond what a foreclosure receiver may do. The court disagreed, finding the receiver’s powers were essentially the same rights the bank already held under the notes, mortgages and construction loan agreement. Those powers served the proper purpose of a receivership: keeping the property from losing value and preserving the status quo while the foreclosure proceeds.
On the records-turnover provision, the court noted in a footnote that the borrowers could seek a protective order on remand, with in camera review and a privilege log, so the trial judge could decide which records actually had to be produced.
The Law
Florida courts appoint receivers in foreclosure cases to protect property whose value is at risk, especially where the mortgage provides for it. Since 2020, commercial real estate receiverships are governed by the Uniform Commercial Real Estate Receivership Act, chapter 714. Under section 714.12, a receiver may collect, manage and protect the property without court approval, but needs court approval to make improvements or to use or transfer property outside the ordinary course. The court may expand or limit those powers.
Crestview predates chapter 714, but its core idea still holds: what the borrower agreed to in the loan documents strongly shapes what the receiver may do.
Current law (2026): Chapter 714, Florida Statutes (Uniform Commercial Real Estate Receivership Act, ch. 2020-106) now governs commercial real estate receiverships; s. 714.12(2) requires court approval to make improvements or transfer property outside the ordinary course.
Lessons
- Read the construction loan agreement. Clauses letting the lender complete construction after default can carry over to a receiver.
- Unpaid taxes, tax liens and physical neglect are strong evidence supporting a receivership.
- Borrowers worried about turning over records should seek a protective order and privilege log rather than simply refusing.
- Commercial receiverships today must also follow chapter 714, including court approval for improvements.
Source: Crestview II, Ltd. v. TotalBank, No. 3D11-1768 — Fla. 3d DCA (March 7, 2012).
Watch the Oral Argument
This is the recording of the actual oral argument, posted on the channel. What lawyers and judges say at argument is not the ruling; the decision is summarized above.
Foreclosure Receiver Powers: Can a Receiver Finish Construction With Lender Consent? | Crestview II v. TotalBank
Go Deeper
- The Florida Foreclosure Process, Step by Step
- The Florida Foreclosure Sale: Timing, Redemption, Surplus Funds, and When You Have to Move
Frequently Asked Questions
Can a receiver complete construction in a Florida foreclosure?
It can if the court authorizes it. In Crestview II, the Third District upheld a receiver’s power to finish partly built homes because the loan documents already gave the lender that right. Under current chapter 714, making improvements to receivership property requires court approval.
When will a Florida court appoint a receiver in a foreclosure?
Courts look at whether the mortgage allows a receiver and whether the property is at risk, for example from unpaid taxes, neglect, or a value far below the debt. Here the evidence showed all of those, including taxes unpaid since 2008 and federal tax liens, and the appointment was upheld on appeal.
What law governs commercial real estate receivers in Florida?
Chapter 714, the Uniform Commercial Real Estate Receivership Act, adopted in 2020. It lists the receiver’s powers and duties, what requires court approval, and how the receivership is reported and closed. Cases decided before 2020, like Crestview II, should be read alongside it.
Does a borrower have to turn over its records to a receiver?
Often yes, but privileged material can be protected. The Third District said the borrower could seek a protective order with in camera review and a privilege log so the trial court could decide which records must be produced. Refusing outright is riskier than asking for that protection.
Talk to a Florida foreclosure defense lawyer
Weidner Law, P.A. has defended Florida homeowners in foreclosure and foreclosure appeals for more than 25 years. If you need a foreclosure defense lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: every Florida statute and court rule is on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
