New procedure for recovery of commercial rent
A new procedure for the recovery of commercial rent is due to come into force next April.
The commercial rent arrears recovery procedure (CRAR) is a “self-help remedy” for landlords, under which they can hire an enforcement agent (formerly a bailiff) to seize goods at the premises or collect the arrears. At least seven days of rent must be outstanding, under current proposals.
It can only be exercised on purely commercial premises, and only applies to pure rent arrears not service charge or other payments. The details of the new procedure are set out in the Taking Control of Goods Regulations 2013 (SI 2013/1894).
CRAR will replace distress, which allows a landlord to seize and hold goods found at the property until rent is paid.
However, in a LexisNexis Current Awareness article, property solicitor Lisa Faulkner said many commercial landlords saw CRAR as “a watered down version of distress” which would “inevitably make the recovery of arrears more difficult”.
