The following Property guidance note provides comprehensive and up to date legal information covering:
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 the lease that may have arisen. Landlords should therefore first consider whether they wish to forfeit before taking any steps to exercise CRAR (see News Analysis: Exercise of CRAR waived right to forfeit for non-payment of rent (Brar v Thirunavukkrasu) and Practice Note: Forfeiture of a lease).
CRAR can only be used to recover rent in relation to leases of commercial premises.
It cannot be used to recover rent in relation to mixed use premises or residential premises. This includes premises:
where the lease (or any sublease) allows residential use, even if they
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