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词条 Draft:Commercial Rent Arrears
释义

  1. Overview

  2. For Landlords

  3. For Tenants

  4. When can the process be used?

  5. References

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In 2014, as part 3 of the Tribunals, Courts and Enforcement Act 2007 [1], a landlord’s common right to claim distress and distrain for unpaid rent, was removed. The new commercial rent arrears recovery (CRAR) process replaced these laws. The law does not apply to Scotland or Northern Ireland.

Overview

No longer can landlords enter leased premises without warning, seize the tenants goods and sell them. Tenants must pay. CRAR only applies to commercial tenancies, under a written lease. It can be used to recover rent and any interest or VAT payable under the lease terms.

Usually, an agreement is made to pay the rent. This allows tenants to continue uninterrupted trade and the landlord to keep tenants and not risk a vacant tenancy leaving them exposed to payment rates.

For Landlords

landlords are those who own leased or rented premises. In this topic, they are the ones who are waiting to be paid the rent. CRAR gives them no right to enter premises and take control of goods - only an Certified enforcement agent can do this.

Before the time of enforcement, 7 days worth notice is needed. A warrant of control form is needed.

If the rent still is unpaid by the time of enforcement - the enforcement officer is to enter the property and take control of certain goods there, to then sell at public auction.

Landlords have to comply with these terms. When the rent in the lease is over mixed used premises or rent in the lease is not pure rent, renegotiation may occur. Landlords may try to strengthen their position and gain greater security in forms of rent deposits and guarantees – personal or by third parties.

For Tenants

Tenants are those who must pay the rent to landlords, as agreed in a contract when agreeing to rent or lease out the property.

The notice of enforcements involved with CRAR, means that all goods must remain on the property – none can be sold or removed.

However, an application to the court for a delay of execution or a set aside may be done.

Controlled goods agreements can be used to repay what you owe over time. Such an agreement enables goods to remain on the premises, but enforcement officers to be able to remove such specified goods if you fail to repay. If the goods do result in being taken, the enforcement agent must produce you with an inventory list of all that seized. This is a specified in section 33 of the Taking Control of Goods Regulations 2013 ( ).

For some tenants, insolvency may be an issue. A notice period alerts the tenant to the landlord’s intentions. This allows the tenant to take reasonable alternatives. Professional advice can be taken. Similarly, tenants can apply to the court for an order to set aside the notice of entitlement – to stop further steps being taken under CRAR. All in all, procedures to help with ensuring a payment can be made.

When can the process be used?

The process is only to be used by landlords in the following circumstances:

The lease did not end by forfeiture,

You owed rent when the lease ended,

Some of the goods formally located on the premises are possessed by you,

The lease ended within the last six months,

The goods are occupied by you, under a commercial lease,

Your old landlords were entitled to immediate reversion, at the time the lease ended.

CRAR can also apply to equitable leases which arise out of a contract, tenancies at will or informal writing.

When tenants remain in an occupation after a lease expires, CRAR does not apply, without the landlord’s agreement.

CRAR is available to vehicles belonging to the tenant on the public highway, as well as goods at commercial premises as the lease describes.

References

1. ^{{cite web | url=http://www.legislation.gov.uk/ukpga/2007/15/part/3 | title=Tribunals, Courts and Enforcement Act 2007}}
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