Commercial Rent Arrears Recovery (CRAR)

Sheriff and Penny understand the importance of maintaining cash flow through regular rent payments. When tenants fail to pay, recovering what you are owed is not always easy. Under regulations published today, the landlord’s ancient right of distress against his tenant to recover arrears of rent has been abolished from 6 April 2014. For commercial premises only, it will be replaced by a new statutory regime for Commercial Rent Arrears Recovery (“CRAR”).

Key aspects of CRAR

Lease must be in writing
Commercial premises only
CRAR may only be enforced by a certificated enforcement agent

Only applies to rent
Notices to sub-tenants to redirect rent will only take effect fourteen days after service

Authorisation to Exercise CRAR

Where there are goods to which we can gain access, Taking Control of Goods under the CRAR process is usually the best option. It is effective and it costs you nothing as we are allowed to impose fees and collect them from the tenant. Although the Enforcement Agent is allowed to remove goods on their first visit if necessary, this does not have to happen. They may be left on the premises under a controlled goods agreement while payment is arranged, thereby maintaining the landlord tenant relationship.

CRAR

AUTHORISATION TO ENFORCEMENT AGENT TO EXCERCISE CRAR ON THE LANDLORD'S BEHALF AND TO TAKE CONTROL OF GOODS - SECTION 73(8) OF THE TRIBUNALS, COURTS AND ENFORCEMENT ACT 2007 AND REGULATION 51 OF THE TAKING CONTROL OF GOODS REGULATIONS 2013.

By this notice, you are authorised to issue a compliance letter and, where there is non-compliance, to take control of goods, remove and sell them.

CLIENT REFERENCE / ACCOUNT NO:

DEBTOR'S DETAILS

NAME OF DEBTOR

DEBTOR'S EMAIL ADDRESS

DEBTOR'S CONTACT NUMBER (if known)

DEBTORS FULL ADDRESS OF PREMISES (as appears on the lease being the commercial premises at which CRAR may be excercised)

DETAILS OF RENT TO BE COLLECTED

AMOUNT OF PURE RENT OWED

AMOUNT OF VAT OWNED

AMOUNT OF INTEREST OWED

TOTAL AMOUNT TO BE COLLECTED

DAILY RATE OF INTEREST

PERIOD TO WHICH THIS RENT RELATES FROM

DETAILS OF MANAGING AGENT (where applicable)

MANAGING AGENT NAME

CONTACT NUMBER

EMAIL ADDRESS

MANAGING AGENTS FULL ADDRESS

LANDLORD'S DETAILS

LANDLORD'S NAME

CONTACT NUMBER

EMAIL ADDRESS

LANDLORD'S FULL ADDRESS

SIGNATURE FOR AND ON/OR BEHALF OF THE LANDLORD

Clear

DATE OF AUTHORISATION

Certification

The information provided in this application shall be kept confidential and will not be shared with anyone else.

Certification *

I certify that the information here is true and correct

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