If a landlord entered into a lease with a tenant subsequent to the granting of the security over which the Receiver has been appointed, the Receiver may be in a position to adopt the lease or terminate it and claim possession of the premises. However, prior to doing so, the Receiver should be cautious about terminating leases as contractual issues may arise.
The Secured Creditor may also obtain a Vesting Order upon the sale of the property which will clear any off title any lease registered on title subsequent to the security registration of the Secured Creditor.
For additional clarification, or if you need assistance, please contact an Insolvency Consultant at Boale, Wood and Company.
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