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Reforming recovery

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22 November 2007 / Andrew Blower , Richard Quenby
Issue: 7298 / Categories: Features , Property
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Andrew Blower and Richard Quenby look at reform of commercial rent arrears recovery

The Tribunals, Courts and Enforcement Act 2007 (TCEA 2007) abolishes a landlord’s ancient right of distress against his tenant and in its place introduces a new regime for commercial rent arrears recovery (CRAR).
TCEA 2007 also brings about a partial reform of the law relating to bailiffs: only an enforcement agent certificated by a judge in accordance with TCEA 2007 may be used by a landlord to take control of goods under CRAR.
Although TCEA 2007 was passed on 19 July 2007, the provisions relating to CRAR will not come into force until the necessary enabling legislation has been introduced. It is anticipated that this will be in early 2008.

WHEN CAN CRAR BE USED?

CRAR is available only to a landlord under a written lease of commercial premises. “Lease” means any tenancy in law or equity—including a tenancy at will—but not a tenancy at sufferance. Premises will not qualify as commercial if all or any part of them is lawfully

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