CRAR

Question 1

What is CRAR?

Answer 1

New procedure to recover rent arrears in order to replace the law of distress.

Allows a certified enforcement agent to enter a tenants premises and recover goods to the value of the debt.

Question 2

When does CRAR apply?

Answer 2

Must be a written lease in place between the landlord and tenant, excluding

1. A tenancy at will
2. Licence.
3. Mixed use premises where there is residential

Question 3

What can be recovered under CRAR?

Answer 3

Principle rent only with VAT and interest.

Service charges and insurance are excluded.

Question 4

Who can exercise CRAR?

Answer 4

Certified Enforcement Agent

Question 5

How many days rent must be due?

Answer 5

7 days of principle rent

Question 6

What do you have to do before entering a premises?

Answer 6

Serve a 7 days notice of enforcement notice.

Question 7

Can you use CRAR if the tenant is in administration?

Answer 7

No, not without consent of the court.

Question 8

What goods can an Enforcement Agent take?

Answer 8

Goods owned by the tenant and are situated at the premises. Tools and equipment of the tenants trade is exempt up to a value of £1350.

Question 9

What must you do prior to selling the goods that have been seized?

Answer 9

Provide the tenant with 7 clear days notice for the Sale of Goods, detailing the time and place of the auction.

If the notice is not served, the goods will be deemed abandoned and should be returned back to the tenant.

Question 10

What other options are available to recover arrears others then rent?

Answer 10

1. Withdraw from deposit
2. Court proceedings
3. Statutory demand