Power to appoint a receiver: a receiver is appointed by the lender by deed of appointment on foot of the mortgage document. The receiver will act as agent for the legal owner of the property and his powers will be set out in the mortgage document at Section 108 LCLRA09 or Section 19(1)(iii) 1881 Act. As the receiver acts as agent of the legal owner he does not have the same powers as the mortgagee in possession. The most important power he does not have is the power to sell the property free of all interests, rights, and estates in respect of which the mortgage has priority. Therefore, if any charges, judgments, or mortgages are registered after the registration of the mortgage and charge the receiver may give possession of the property to the mortgagee in possession to complete the sale. When the mortgagee in possession, that is the lender, completes the sale he effectively wipes out those burdens/encumbrances by “overreaching” and sells the property free and clear of the burdens (Section 104 LCLRA09). Most mortgagees (banks) have no interest in managing the property so they appoint a receiver to do it instead especially when they want to get income from the land/property and they do not want to sell it. Receiver has to take strict account of the property i.e. must sell property for a proper price.