By Tony Booth

The Bill containing new rules for Commercial Rent Arrears Recovery (CRAR) received Royal Ascent in mid-2007 and, while as yet there is no set date for it becoming law, its arrival on the statute books is undoubtedly imminent.

Once introduced, it will significantly diminish the rights commercial landlords have to recover rent arrears.

CRAR will shuffle commercial landlords ever closer to the regulations now affecting residential landlords in the private sector. Commercial landlords have enjoyed the beneficial law of 'distress' for many years. This (essentially) allows landlords of offices, industrial and other commercially let property to recover rent arrears without the irritation, cost and inconvenience of going to court.

By applying the 'distress' procedure, landlords can enter and seize tenants' goods and hold them or sell them in lieu of rent arrears.