International Top 30 position: 4

Commercial rent arrears recovery

On 6 April 2014, regulations implementing the commercial rent arrears recovery (CRAR) provisions of the Tribunals, Courts and Enforcement Act 2007 will come into effect. This will mean major changes for commercial landlords in terms of rent arrears recovery by seizure of tenant goods.

CRAR will replace the ancient common law remedy of distress currently available to landlords. A landlord levies distress by entering the tenant’s demise to seize goods to the value of outstanding rent arrears, either personally or by using an authorised bailiff. In the case of commercial premises, neither the court’s permission nor prior notice to the tenant is needed.

This remedy has attracted criticism for potentially violating the human rights of the tenant and for allowing the landlord to recover debts from the tenant ahead of other creditors…

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