CRAR Notice to Sub-Tenant of Part of Premises
This CRAR Notice to Sub-Tenant of Part of Premises is used under the Commercial Rent Arrears Recovery (CRAR) procedure, which came into force on 6 April 2014. Where a tenant has rent arrears and there is a sub-lease of part of the premises in place, it lets the landlord require the sub-tenant to pay its rent to the landlord instead of the tenant, under section 81(2) of the Tribunals, Courts and Enforcement Act 2007.
About CRAR
CRAR replaces the old remedy of distress, which allowed landlords to seize and sell property belonging to a tenant with rent arrears. The current regime is more limited in scope and sets out a prescribed enforcement procedure.
A temporary moratorium on exercising CRAR applied where the arrears in question were 'protected rent debts' under the Commercial Rent (Coronavirus) Act 2022, but this moratorium ended on 23 September 2022 and cannot apply to arrears today.
When to use this Notice
This Notice is for use where the sub-tenant has a sub-lease of part of the premises let to the tenant. Where the sub-lease is of the whole of the tenant's premises, the Notice Sub-Tenant (Whole) should be used instead.
Completing the Notice
The Regulations prescribe the information that a section 81(2) notice must contain and require it to be signed by the landlord; they do not prescribe this Simply-Docs layout as a statutory form. Complete every item required by regulation 54 and serve it using regulation 8. Altering or deleting required content may invalidate the notice.
The blanks in the form should be completed with the appropriate information. No paragraphs should be deleted, as this may invalidate the Notice.
When the Notice takes effect
The Notice takes effect 14 'clear days' after it is 'served' on the sub-tenant. 'Clear days' means complete days, not including the day on which the period begins. 'Served' means received by the sub-tenant, so if you are using the post, allow time for the Notice to arrive.
Serving the Notice
The Notice must be served using one of the methods set out in regulation 8(1) of the 2013 Regulations:
- by post at the place, or one of the places, where the sub-tenant usually lives or carries on a trade or business;
- by fax or other means of electronic communication;
- by hand delivery through the letter box of the place, or one of the places, where the sub-tenant usually lives or carries on a trade or business;
- where there is no letterbox, by affixing the notice at or in a place where it is likely to come to the attention of the sub-tenant;
- where the sub-tenant is an individual, to the sub-tenant personally; or
- where the sub-tenant is not an individual (for example, a company, corporation or partnership), by delivering the notice to the place, or one of the places, where the debtor carries on a trade or business, or to the registered office.
The sub-tenant is asked to sign and return a duplicate of the Notice to confirm receipt. The landlord should enclose two copies, and may wish to include a stamped addressed envelope for the sub-tenant to use.
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