Real Estate Tip of the Week: Let the Licensors Distrain
Published 31 March 2014
The new Commercial Rent Arrears Recovery ("CRAR") rules come into force on 6 April 2014. As we have advised in previous tips, CRAR only applies to leases and the rules will have the effect of making void any contractual term that gives rights to distrain for rent. A landlord will in future need to rely on the statutory rights created by CRAR.
CRAR does not however apply to licences to occupy commercial premises and the rule making void any contractual term that gives rights to distrain for rent does not therefore extend to licences to occupy commercial premises.
This means that licensors of commercial premises will still be entitled to impose contractual provisions giving them the right to distrain for unpaid licence fees. Such licensors should ensure they do so to have the ability to distrain.