Q&A with DAWGS and Frank Simon of Simon PLC Attorneys & Counselors
About Frank R. Simon, Founder and Managing Member of Simon PLC Attorneys & Counselors
Mr. Simon is a Receiver and a litigation/workout attorney, practicing and admitted in New York, Illinois, and Michigan. Additionally, Simon PLC Attorneys & Counselors has offices in Michigan, Arizona, Florida, Illinois, New York, Ohio and Texas.
Simon is regularly appointed as a Receiver in matters involving creditor’s rights and debtor defaults, real estate and construction disputes, lien enforcement, collections, and other complex issues requiring receivership. Those appointments touch on many other issues that require a receiver, including cannabis related matters, divorce and support orders, as well as neglected or otherwise abandoned vacant properties. In fact, Mr. Simon was recently appointed receiver over a multifamily complex consisting of 14 separate buildings and 510 units.
Simon’s team includes experienced professionals in receivership, property and construction management, financial reporting, and brokerage, ensuring comprehensive support for each case. Simon’s success in these practice areas and his reputation for results among his peers in the industry led to his appointment as a Director for the Commercial Receivership Association.
What is the purpose of a receiver?
The purpose of the receiver is to preserve property or other assets of parties subject to litigation in an effort to ensure an equitable outcome for all parties involved. A court-appointed receiver has the authority to investigate potential fraud, take actions to prevent waste of assets, gather and manage all relevant assets, and liquidate property as directed by the court.
Key points about receivers:
- Court-appointed:
A receiver is a neutral party appointed by a court to take control of property or a business when there is a legal dispute or potential for asset mismanagement. A receiver’s neutrality requires that they do not represent the interests of individual creditors but are rather tasked with preserving property and assets during ongoing litigation. - Fiduciary duty:
Receivers have a legal duty to act in the best interests of all parties involved and must account for their actions to the court. A receiver is not an agent of, or for the benefit of, one party or the others, but rather appointed to protect and benefits parties equally with the strictest impartiality. - Powers and duties:
The receiver has the authority to take possession of the property, collect rents, manage operations, sell assets, and distribute proceeds according to court orders. - Court oversight:
The receiver must regularly report their actions and decisions to the court for approval.
What is the role of a receiver appointed to a vacant property?
A receiver appointed to a vacant property is a court-appointed individual responsible for taking control of the property, managing its upkeep, addressing safety concerns, and preserving its value until a legal dispute is resolved.
The goal of the receiver is to prevent further deterioration of the premises and protect the surrounding neighborhood from blight. This is accomplished by securing the property, maintaining it, and potentially arranging for its sale if necessary, all while acting under the court’s direction.
Secured creditors often enjoy the benefit of a mortgage with a right to foreclosure of the land and physical improvements in the event of a default. However, foreclosure is not always quick or streamlined with challenges such as redemption, junior liens, incomplete construction builds, and a lack of access. Receivership is an effective alternative to foreclosure as a remedy for creditors and interested parties of vacant buildings to have an immediate impact to resolve concerns such as neglect, blight, squatters, taxes, utilities, vandalism and many more.
Mr. Simon’s experience in managing challenging assets has resulted in him developing relationships with many vendors perfect for particular purposes. Receivership by its very nature does not allow for traditional business planning, investment and projections. Often times, receivers are called upon to act quickly in response to emergency conditions with few resources. Having the vision and understanding to quickly address chaotic situations is a key component creditors look for in selecting a qualified receiver. In such circumstances, a receiver’s network of professionals and vendors must be responsive, reliable and tested to meet the needs of the court and the performance of the Receiver’s obligations.
Assets under management by Simon as a receiver have recently included a sixteen-parcel apartment complex with decaying infrastructure, subject to blight and creating an attractive nuisance. Break-ins and municipal intervention, balanced alongside a robust marketing and brokerage effort, required solutions far greater than unsightly and easily penetrated plywood barriers. In this instance, Simon turned to DAWGS to secure the property and keep it marketable. Attractive, quickly installed, and effective barriers and guards provide a solution to the dual goals of the receiver to secure assets and also demonstrate that the property is under control of an invested and watchful eye.
What are the reasons a receiver might be appointed to a vacant property?
- Foreclosure: When a property goes into foreclosure and the owner fails to maintain it, a receiver may be appointed to protect the property’s value for the lender.
- Neglectful property owner: If an owner is unable or unwilling to maintain a property, a court may appoint a receiver to address issues like security concerns, overgrown vegetation, structural damage, and safety hazards.
- Community concerns: When a vacant property becomes a nuisance to the surrounding neighborhood, a receiver can be appointed to address blight and improve the community’s safety and quality of life.
What are the key responsibilities of a receiver for a vacant property?
- Securing the property: This includes securing windows and doors to prevent vandalism, squatting, and theft.
- Maintenance and repairs: The receiver is responsible for basic maintenance like lawn mowing, snow removal, addressing leaks, and fixing minor damages to prevent further deterioration.
- Code compliance: They must ensure the property adheres to local building codes and address any violations that may exist.
- Managing finances: This involves collecting any rental income if applicable, paying property taxes and insurance premiums, and managing any expenses related to the property’s upkeep.
- Marketing and selling the property: Depending on the situation, the receiver may be tasked with preparing the property for sale, listing it on the market, and managing offers to sell the property.
- Reporting to the court: The receiver must regularly provide detailed reports to the court detailing their actions, expenses, and any issues encountered while managing the property.
How does DAWGS secure and protect vacant properties managed by receivers?
DAWGS Vacant Property Security leases their products which means their service teams handle delivery, installation, inspection, and removal.
- Fast and reliable service – 24-hour turnaround ensures properties are never unsecured.
- Deters Break-Ins – Protects properties against vandalism, squatting and theft.
- Modular design – DAWGS door and window guards are designed to fit any size opening.
- Neutral colors and powder coated – DAWGS powder coating makes graffiti removal easy and their neutral colors blend with the building exterior.
- No Stolen Tools and Materials – A secure property means contractors can leave tools and materials in the property without the threat of theft.
- No lock boxes or key management – DAWGS doors with built-in codes eliminate the need to coordinate keys and lock boxes.
- Remote management capabilities – DAWGS can manage your property across the nation and keep you updated throughout the entire process.
