Commercial rent arrears recovery (CRAR)

The following Property Disputes practice note provides comprehensive and up to date legal information covering:

  • Commercial rent arrears recovery (CRAR)
  • Right to recover rent
  • Leases and premises
  • Rent recoverable
  • Recovery from sub-tenant
  • Who can exercise CRAR?
  • Enforcement agents
  • Notice to the tenant
  • Giving notice
  • Effect of notice
  • More...

Commercial rent arrears recovery (CRAR)

Coronavirus (COVID-19): During the current pandemic, legislation and changes to practice and procedure in the courts and tribunals have been introduced, which affect the following:

  1. proceedings for possession

  2. forfeiture of business leases on the grounds of non-payment of rent

  3. a landlord's right to exercise Commercial Rent Arrears Recovery (CRAR) and enforcement agents taking control of goods

  4. service of various notices to recover possession of residential properties

  5. practice and procedure in the First-tier Tribunal (Property Chamber) and Upper Tribunal (Lands Chamber)

  6. insolvency legislation of both a permanent and temporary nature

For further information and guidance, see: Coronavirus (COVID-19)—implications for property.

Right to recover rent

The commercial rent arrears recovery (CRAR) regime allows landlords to seize a tenant’s goods from the demised premises in order to recover unpaid rent. It replaced the old common law right to levy distress, and is more strictly regulated than the old regime in that (among other things) it requires the use of enforcement agents and tenants must be given notice in advance.

CRAR also allows landlords to recover rent from sub-tenants, by serving notice requiring them to pay rent direct to the landlord, rather than the tenant (replacing the notice which could previously be served on a sub-tenant, pursuant to the Law of Distress Amendment Act 1908). See Recovery from sub-tenant below.

Exercising CRAR will waive any right to forfeit

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