CRAR RULE BOOK

We operate under the Tribunals Courts and Enforcement Act 2007, which was brought into effect in April 2014, and which replaced distress for rent, using section 72 which allows a commercial landlord to use Schedule 12 ( taking control of goods) which enables to recover rent payable from the tenant, without needing to attend a court.

CRAR will only apply to the basic rent (plus any interest and VAT) payable under the lease. This means that items not directly attributable to the tenant’s possession and use of the premises, such as insurance, services charges, will not be recoverable through CRAR. There must also be a written lease in place and any contract or lease that seeks to amend or avoid the CRAR provisions will be void.

A Landlord may only sign a Warrant FOR RENT ONLY (plus any interest and VAT) payable under the lease REGARDLESS OF WHAT ANY EXISTING LEASE MAY STATE(this conform with CRAR Regs)

You can only issue a Warrant for premises THAT ARE FULLY COMMERCIAL(ie not a Public house with staff accomodation)

THAT HAVE AN EXISTING CURRENT LEASE IN FORCE

Use of CRAR after end of lease

When the lease ends, CRAR ceases to be exercisable, with these exceptions.

CRAR continues to be exercisable in relation to goods taken control of under it—

before the lease ended, or under subsection (3).

CRAR continues to be exercisable in relation to rent due and payable before the lease ended, if the conditions in subsection (4) are met.

These are the conditions—

(a) the lease did not end by forfeiture;
(b)not more than 6 months has passed since the day when it ended;
(c) the rent was due from the person who was the tenant at the end of the lease;
(d)that person remains in possession of any part of the demised premises;
(e) any new lease under which that person remains in possession is a lease of commercial premises; (f) the person who was the landlord at the end of the lease remains entitled to the immediate reversion.

ONLY THE LANDLORD CAN SIGN A WARRANT
For those clients that have a Solicitor or Property Management Company acting for them, it is important that you continue to use them as before to ensure compliance with the New Rules of which they will be able to advise you fully and they will forward the Warrant to you for signature which will then be sent by them to us for execution.

PREMISES WITH RESIDENTIAL ACCOMMODATION

You CANNOT issue a Warrant of Control for ANY premises where Residential Accommodation is attached. OR WHERE A TENANT IS USING ANY PART OF THE PREMISES AS Residential Accommodation. E.g. a room in the commercial premises or above, at the side of, at the rear of the demised premises.

But if the residential accommodation is on a seperate lease either to a third party or
the commercial Tenant and not accessible directly from the Commercial premises, or the use of the premises as a dwelling is in contravention of the terms of the lease, then it appears at this stage that a Warrant CAN be issued. YOU ARE ADVISED TO CONSULT WITH YOUR SOLICITOR OR PROPERTY MANAGEMENT COMPANY FOR FURTHER CLARIFICATION IN THIS REGARD.

WE CAN NOW ONLY SEIZE THE GOODS BELONGING TO THE TENANT. On or about the property.

Therefore if your tenant is John Smith, and the Company operating from your premises is John Smith Limited we can only seize goods belonging to John Smith Personally. . Again my advice is to consult with your Solicitor or Property Management Company regarding existing and any future leases and ensure that the lease is in both the names of individual and also any Limited Company that may be trading from your properties, Your Solicitor will advise you further and fully in this regard.

THE ENFORCEMENT PROCEDURE HAS CHANGED

The Enforcement Agent ( Bailiff ) now has to give the tenant Notice of Enforcement, this is done on a Statutory Form and can only be done by the Enforcement Agent or his office. The Landlord MAY NOT use this Statutory Form

Any tenant wishing to make a payment to you DIRECT once you have issued the Warrant and I have Executed the delivery of the Notice of Enforcement MUST be directed to pay the money direct to our bank account. Any Negotiation of a payment agreement will be carried out by the Enforcement Agent.

If full payment is not made within the 7 clear days given, the Enforcement Agent will then attend and Take control of the tenants goods, by entering into A CONTROLLED GOODS AGREEMENT with the tenant.

This will allow the goods to remain on the premises and the tenant will continue to trade as before, providing that he maintains payment within the agreed terms of the Controlled Goods Agreement.

SALE OF SEIZED GOODS

GOODS MAY ONLY BE SOLD VIA THE ENFORCEMENT OFFICER (NOT THE LANDLORD ) BY A PUBLIC AUCTION HOUSE OR ON LINE AUCTION BY AN AUCTION HOUSE. THE LANDLORD MAY NOT SELL THE SEIZED GOODS NOR MAY HE COME TO ANY ARRANGEMENT WITH THE TENANT FOR SALE OF THE GOODS.

An Order for any other mode of sale e.g. private tender, private sale, must be applied for through the County Court.

OUR FEES, AS PREVIOUSLY ARE SET BY PARLIAMENT (MOJ) and cannot be changed or reduced

LANDLORDS ARE STILL ABLE TO RE-CHARGE THE ENFORCEMENT AGENTS, SOLICITORS AND ALL OTHER COSTS OCCASIOND IN COMMERCIAL RENT RECOVERY BY INVOICING THEM AS PREVIOUSLY TO THE TENANT AFTER THEY BECOME DUE ( THAT IS TO SAY ONCE WE HAVE CHARGED YOU BY WAY OF INVOICE) for “ Enforcement costs to The Landlord”.

The maximum time that a Controlled Goods agreement may be in force without application for an extension to the County Court is 12 months.

Commercial Rent Arrears Recovery

We are the Southwest’s only independant enforcement service, specialising in commercial arrears rent recovery, we respond with a fast service, and at no cost to the Landlord.

Using the Enforcement powers that we use to enforce and recover your outstanding rent.

Whether its Shops,Industrial Units ,Offices,Kiosks etc we can get your owed rent back

We’ll recover your rent arrears – fast!