Penningtons Manches

UK 200 2013 position: 90

Real Estate Litigation Update — April 2014: commercial rent arrears recovery (CRAR) — distressing times

By James Harrison

A change to the law regulating how landlords can recover commercial rent arrears comes into force on 6 April 2014. Landlords will need to be aware of the changes, especially the fact that the common law right of distress is being abolished.

In its place will be commercial rent arrears recovery (CRAR), which is a more regulated method of enforcement than the common law ‘self-help’ remedy that was distress.

In the new regime, the remedy of CRAR will still allow landlords to remove goods from property occupied as commercial premises but will require landlords to take additional steps. This will include requirements to provide seven clear days’ notice to a tenant, recovery only of basic rent (even where service charge and insurance may be reserved as rent) and the written appointment of an enforcement agent…

Click on the link below to read the rest of the Pennington Manches briefing.

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