Property Left Behind by Commercial Tenants
This subfolder contains Guidance Notes and a template form of Notice which can be used to exercise the rights given to Landlords by Section 12 of the Torts (Interference with Goods) Act 1977.
Section 12 provides a procedure which Landlords can implement to enable them lawfully to sell or dispose of possessions left behind by a Tenant after the expiry of a Lease.
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Frequently Asked Questions
My commercial tenant has moved out and left goods behind. Can I just throw them away?
No. You become an involuntary bailee and must take reasonable care of the goods. To dispose of them lawfully you use the procedure in the Torts (Interference with Goods) Act 1977: give the former tenant proper notice of your intention to sell, then, once the notice has run, you can sell and account for the proceeds. This sub-folder has the notice and guidance.
How do I serve notice before selling goods left behind?
Under section 12 of the Torts (Interference with Goods) Act 1977 you serve a notice on the former tenant stating your intention to sell, describing the goods and giving them a chance to collect. If you cannot trace the owner, you must take reasonable steps to do so first. This sub-folder has a template notice to sell uncollected goods.
What happens to the money if I sell the tenant's abandoned goods?
You can deduct what you are owed in connection with the goods, for example storage costs, and you must account to the former tenant for the balance. The goods should be sold at the best price reasonably obtainable. Keep records of the sale and the sums. This sub-folder's guidance explains handling the proceeds correctly.
What if I dispose of the goods without following the procedure?
You risk a claim in conversion by the owner, meaning you could have to pay the value of the goods even though the tenant abandoned them. Following the statutory notice procedure protects you. If you are unsure the tenant owns the goods or cannot trace them, you can apply to court for authority to sell. This sub-folder helps you follow the correct process.
Does it matter what the lease says about goods left at the end?
Yes, but be careful. A lease term does not always displace the owner's rights in goods, so the safest course is still the Torts (Interference with Goods) Act 1977 notice procedure before selling or disposing. This sub-folder's guidance and notice help you act lawfully whatever the lease says.