CRAR Notice to Sub-Tenant of Whole of Premises
This CRAR Notice to Sub-Tenant of Whole of Premises relates to the
Commercial Rent Arrears Recovery (CRAR) procedure which came into force on
6 April 2014.
CRAR replaces the old remedy of distress, which allowed landlords to seize
and sell property belonging to a tenant who had rent arrears. The new
regime is more limited in scope and sets out a prescribed enforcement
When a tenant has rent arrears and there is a sub-lease in place, one
option open to the landlord is to serve notice on the sub-tenant requiring
the sub-tenant to pay its rent to the landlord rather than to the tenant.
This right is contained in section 81(2) of the Tribunals, Courts and
Enforcement Act 2007.
Landlords should note that temporary changes have been made to the CRAR
regime in response to the Covid-19 pandemic. For a notice served between 25 March 2021 and 23 June 2021, the minimum number of days' outstanding rent required for CRAR to be exercised will be 457 days' rent and between 24 June and 30 June 2021, 554 days' rent.
This Notice is suitable for use where the sub-tenant has a sub-lease of the
whole of the premises let to the tenant. If the sub-lease is of part only,
the Notice Sub-Tenant (Part) should be used instead.
The Notice is in the prescribed form required by the Taking Control of
Goods Regulations 2013. Details of the Property, Lease, Sublease, Landlord,
Tenant and Sub-Tenant need to be inserted, as well as the amount of money
owed by the Tenant.
The blanks in the form should be completed with the appropriate
information. No paragraphs should be deleted as this may invalidate the
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, remember to allow time for the Notice to arrive.
The Notice must be served using one of the methods set out in Regulation
8(1) of the 2013 Regulations. The options are:
(a) by post at the place, or one of the places, where the sub-tenant
usually lives or carries on a trade or business;
(b) by fax or other means of electronic communication;
(c) 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
(d) 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;
(e) where the sub-tenant is an individual, to the sub-tenant personally; or
(f) where the sub-tenant is not an individual (but is, 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 therefore enclose two copies and may
wish to enclose a stamped addressed envelope for the sub-tenant to use.
This CRAR Notice to Sub-Tenant of Whole of Premises is in open format.
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