The Taking Control of Goods Regulations 2013

PART 7 COMMERCIAL RENT ARREARS RECOVERY (CRAR)

General

Part 7 to apply only to CRAR

50.  This Part only applies to debts enforceable under section 72 of the Act.

Authorisation by landlord to another to exercise CRAR on landlord’s behalf

51.  Where a landlord gives authorisation under section 73(8) of the Act to a person to exercise CRAR on the landlord’s behalf, the authorisation must—

(a) only authorise an enforcement agent; and

(b) be in writing, be signed by the landlord and provide the following information—

(i) the date of authorisation;

(ii) the landlord’s name and contact details;

(iii) the name and contact details of the person authorised to act on behalf of the landlord;

(iv) sufficient detail to enable the authorised person to identify the commercial premises in respect of which CRAR may now be exercised on the landlord’s behalf;

(v) the amount of rent owed; and

(vi) the period in relation to which the rent is owed.

Minimum amount of net unpaid rent for CRAR to become exercisable

52.  The minimum amount of net unpaid rent for the purposes of section 77(3) of the Act is an amount equal to 7 days’ rent.

Right to rent from sub-tenant

Notice to sub-tenant: when notice takes effect and service

53.—(1) A notice served on any sub-tenant under section 81(2) of the Act takes effect 14 clear days after the notice is served on that sub-tenant.

(2) The notice must be served on the sub-tenant by a method required under regulation 8(1) (method of giving notice).

Notice to sub-tenant: form and contents

54.  The notice must be in writing, be signed by the landlord and contain the following information—

(a) the landlord’s name, reference and contact details and the date of the notice;

(b) the amount of rent the landlord has the right to recover from the immediate tenant by CRAR (the notified amount);

(c) that while the notified amount remains unpaid, the sub-tenant must pay the sub-tenant’s rent directly to the landlord instead of to the immediate tenant, as a discharge for any rent payable by the sub-tenant under the sub-lease, until—

(i) the notified amount has been paid (by payments under the notice or otherwise); or

(ii) the notice is replaced or withdrawn; and

(d) that the landlord may withdraw the notice in accordance with regulation 55.

Notice to sub-tenant: withdrawal of notice

55.  A notice served on any sub-tenant under section 81(2) of the Act is withdrawn if the landlord provides written notice to the sub-tenant who received that notice that it is withdrawn.