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Commercial Rent Arrears Recovery (CRAR)

   
  • A principal area of our work is recovering Commercial Rent Arrears on behalf of Landlords, Managing Agents, Property Companies and Solicitors by means of Taking Control of Goods.
  • From the 6th April 2014 the common law remedy of Distress, whereby Commercial Landlords may enter their Tenant's premises to seize assets and recover rent arrears has been replaced with a new process, now in statute under the Tribunals Courts and Enforcement Act 2007 called Commercial Rent Arrears Recovery (CRAR)

    This new process means that the Landlord retains the power to enter the Tenant's premises and take control of their goods to recover rent payable under a written lease. However, there are new procedures to be followed.

      1. WRITTEN WARNING NOTICE
        Enforcement Agents must provide 7 days notice of an intended action. This Notice is called 'Notice of Enforcement' and includes details such as: Details of the Debt, Date the Notice was issued, Contact details of the Enforcement Agent and Methods of Payment.
      2. TAKING CONTROL OF GOODS
        After the 7 days have elapsed, The Enforcement Agent can attend the demise premises on any day of the week between the hours of 6am and 9pm in order to Take Control of Goods (this action was previously known as Walking Possession). A Controlled Goods Agreement will indicate that the Enforcement Agent is in control of the goods listed and cannot be disposed of by the Tenant without the authority of the Agent.
      3. RE-ENTRY
        Where it is necessary to re-enter the premises, the Enforcement Agent must give 2 clear days to the Tenant that he intends to re-enter. Again the hours of entry are between 6am and 9pm(unless the business operates outside these hours)
      4. Sale of Goods
        Before a sale can go ahead an independent valuation must take place. The Notice of Sale must be within 12 months of taking control of the goods and there should be a minimum notice of 7 days for the sale to be valid

    Commercial Rent Arrears Recovery can commence under the following criteria:

    The rent is Pure, ie the amount of Rent that is due under a written lease together with any interest on that amount and any VAT chargeable.

    The demise premises are not in any part used as a dwelling under the written lease.

    The landlord may instruct the Enforcement Agent to act the day following the rent being due as long as the debtor is in arrears by more than the minimum 7 days.

    Only goods belonging to the Tenant may be taken into control. Any goods belonging to a third party are exempt.

  • Whilst we provide a national coverage, the main sphere of operations is throughout London, the South East and the Home Counties.
  • Attendance is normally the same day or within twenty-four hours of instruction.
  • We provide an effective professional service, we keep you informed throughout the whole process and account all cleared funds promptly.

FORFEITURE (by means of peaceable re-entry)

  • As an adjunct to our Commercial Rent work we also undertake Forfeiture of Commercial Property leases by means of peaceable re-entry, usually for non-payment of rent but also for other breaches of covenant where a Section 146 Notice under the Law of Property Act 1925 has been served.
  • We normally attend at the subject property within 24/36 hours of instruction. We will be accompanied by a locksmith.
  • Because our Enforcement Agents do not have any power of eviction or expulsion, attendance is usually made in the middle of the night or early hours of the morning when no one is likely to be there.
  • Entry is made, locks changed and notices of termination posted on doors and windows. New keys are then passed to the Landlord or his Agent.
Download forms:

Warrant to Seize Goods (Word document)

Authority to Effect Forfeiture (Word document)

 

For more information call Bernard Chinnery
on 020 8466 9111 or email bchinnery@gandc.net

 

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