Commercial Rent Arrears Recovery (CRAR) Withdrawal of Notice to Sub-Tenant

CRAR Withdrawal of Notice to Sub-Tenant

PROP.CRAR.03
This CRAR Withdrawal of Notice to Sub-Tenant relates to the Commercial Rent Arrears Recovery (CRAR) procedure that is effective from 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 procedure.

When a tenant has rent arrears and there is a sub-lease in place, one option open to the landlord is to serve a CRAR Notice on the sub-tenant. Such a notice requires the sub-tenant to pay its rent to the landlord rather than to the tenant.

The landlord can withdraw a CRAR Notice at any time and must withdraw the Notice if the debt is repaid in full (unless paid entirely by the sub-tenant in question) or if the Notice is “replaced”. The Notice is replaced if the landlord serves another Notice on the same sub-tenant or if he serves a notice on another sub-tenant that covers the same rent and that sub-tenant’s lease is superior or inferior to the first sub-tenant’s sub-lease.

This Withdrawal Notice is in the form prescribed by regulation 55 of the Taking Control of Goods Regulations 2013. The blanks in the form should be completed with the appropriate information. No paragraphs should be deleted as this may invalidate the Notice.

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 Withdrawal of Notice to Sub-Tenant is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.

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