Q&As

What steps should a landlord consider when drafting a commercial or mixed-use lease in the light of the new CRAR procedure?

read titleRead full title
Published on LexisPSL on 11/04/2014

The following Property Q&A provides comprehensive and up to date legal information covering:

  • What steps should a landlord consider when drafting a commercial or mixed-use lease in the light of the new CRAR procedure?
  • What is CRAR?
  • What should a landlord consider when drafting a new lease?

What steps should a landlord consider when drafting a commercial or mixed-use lease in the light of the new CRAR procedure?

What is CRAR?

As of 6 April 2014, the old common law remedy of distress for rent was replaced by the new Commercial Rent Arrears Recovery (CRAR) regime. The Tribunals, Courts and Enforcement Act 2007 introduced a new procedure for executing unpaid commercial rent arrears against the non-paying tenant's goods. Much like the old remedy of distress, CRAR is a self-help remedy and does not generally require the involvement of the courts. However, it brings about many changes, the main ones being as follows:

  1. the use of 'enforcement agents' rather than bailiffs

  2. it may only be exercised in respect of purely commercial premises

  3. a requirement that the lease must be in writing

  4. it may only be exercised in respect of 'pure rent' (meaning the amount payable under the lease for the possession and use of the

Popular documents