Brian Walsh (Galway West, Independent)
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263. To ask the Minister for Justice and Equality in view of recent accounts of an ordeal in County Kildare, if she will consider introducing a code of conduct in respect of the repossession of properties by receivers or other parties; and if she will make a statement on the matter. [17590/15]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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The position is that the appointment of a receiver over mortgaged property is one of the remedies available to a lending institution in cases of mortgage default. It is important to note, however, that this is a remedy which applies in the main to commercial property, which may include ‘buy-to-let’ residential property. It does not, therefore, apply to the principal dwellings of defaulting borrowers.

The appointment of a receiver is normally an alternative to the lender seeking actual repossession of the mortgaged property. Instead of taking possession, a receiver is appointed to manage the property; in the case of commercial premises, the goal may be to achieve more efficient management and operation of a viable business; in the case of ‘buy-to-let’ residential property, the intention is more often to collect rental income produced by the property and to divert it towards servicing the mortgage.

I am of course conscious that the appointment of a receiver over mortgaged property is likely to be both traumatic and stressful for the borrowers involved or, indeed, for any tenants involved. I would therefore urge receivers to act with tact and consideration; above all, they must act within the laws governing their appointment and the law of the land.

While I am aware from media reports of the incident referred to by the Deputy, it appears to be an isolated exception to the general rule. I am aware that the Banking and Payments Federation has published a "Residential Tenant's Guide to Receivership" which provides tenants of residential property to which a receiver has been appointed with useful guidance and information on the receiver's role and powers (available on www.bpfi.ie). I intend writing to the Federation to suggest preparation of a separate Guide to deal with the role and powers of receivers appointed to other categories of commercial property. I have also asked my Department to keep this issue under review.