Judges Demand

CRAR – Will come into force from 6th April 2014

Published On: 2nd April 2014

Commercial Rent Arrears Recovery – will be come into force on 6th April 2014. This is will replace the remedy of distress or distraint for rent.

If the rent falls due either this quarter day of 25th March 2014 or on 1st April 2014, you can still act under distress for rent before CRAR comes into force.

Reasons to act quickly under distress for rent:

  • You can distrain the first day the rent is in arrears – with CRAR the rent must be at least 7 days in arrears
  • You do not have to give notice – under CRAR you must give 7 clear days’ notice, not including Sundays and bank holidays
  • You can recover any sum treated as rent in the lease, e.g. service charges, rates, insurance – only the actual rent can be recovered under CRAR
  • The tenant has no right to appeal – with CRAR the tenant may apply to have the Notice set aside or apply for an order to stay enforcement
  • You can instruct sub-tenants to pay you directly – under CRAR you must give them 14 days’ notice

Alternative options

Once CRAR is in force as of 6th April 2014, commercial landlords will still have the option to use the courts.

If a large amount of the sum owed comprises of costs other than rent after CRAR is in force, a County Court Judgment (CCJ) or Debt Recovery will be your only option to try and recover the debt.

You can enforce it in the same way as a money judgment, by transferring it to the High Court for enforcement by our HCEO (High Court Enforcement Officer), provided the judgment is over £600.00.

Our HCEO can enforce at any address within England or Wales where the debtor may have assets.

If you wish to also repossess the property, you can apply for a combined writ for possession and money judgment.