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Commercial Rent Arrears Recovery (CRAR)

Statutory Recovery of Commercial Rent Arrears

Commercial Rent Arrears Recovery (CRAR) is a statutory enforcement procedure available to landlords of commercial premises in England and Wales, enabling recovery of outstanding rent through controlled enforcement action.

UK Bailiffs delivers CRAR instructions with a focus on compliance, control and defensibility — ensuring every stage is lawfully executed, fully documented and professionally managed from instruction through to resolution.

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Commercial Rent Arrears Recovery enforcement by UK Bailiffs

Controlled statutory enforcement for commercial landlords

Our approach to CRAR is structured, compliant and outcome-focused, giving landlords and professional clients confidence that recovery action is being handled lawfully, carefully and with proper oversight throughout.

Professional Oversight

Experienced enforcement specialists managing each instruction with structure, clarity and legal care.

Statutory Process

CRAR is exercised within a defined legal framework for the recovery of qualifying commercial rent arrears.

Court Certificated Bailiffs

Enforcement excersised by Enforcement Agents without the need of a Court Order.

Defensible Approach

Documented, compliant action designed to protect client position while pursuing effective recovery.

Our CRAR Process

We operate this service swiftly and lawfully under Part 3 of the Tribunals, Courts and Enforcement Act 2007. Below is a clear breakdown of how the process is managed from instruction through to resolution.

Step-by-Step CRAR Procedure

1. Instruction: Submit our short online form. This generates compliant documentation and initiates the process immediately.

2. Assessment: We review the lease, rent position, and eligibility to ensure CRAR can be exercised lawfully.

3. Notice of Enforcement: A statutory 7-day Notice is served, providing the tenant with an opportunity to settle.

4. Enforcement Attendance: If unpaid, Certificated Enforcement Agents attend to take control of goods.

5. Sale / Resolution: Goods may be secured or sold where required to recover outstanding rent.

6. Reporting: Full reporting is provided, including photographic evidence and outcome summary.

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Pros, Cons and Practical Limits of Using CRAR

CRAR is a powerful statutory remedy for commercial landlords, but it is not universal. Understanding where it works well — and where its limits sit — is key to deploying it effectively.

Advantages of CRAR

  • No court action required to commence enforcement
  • Fast deployment via certificated enforcement agents
  • Enforcement costs are generally recoverable from the tenant
  • Limited to rent, avoiding wider contractual disputes
  • Preserves landlord remedies under the commercial lease

Limitations and Constraints

  • Available only for purely commercial premises
  • Does not apply to service charges or insurance rent
  • Seven clear days’ notice required before enforcement
  • Unavailable once the tenant enters insolvency
  • Goods may have limited resale value in some sectors

Typical CRAR Enforcement Timeline

While every instruction differs, a standard CRAR process usually follows this structure:

  • Day 0: Landlord instructs an enforcement agent (e.g. UK Bailiffs ).
  • Day 1: Notice of Enforcement served on the tenant (seven clear days required).
  • Day 8: Enforcement agents attend if payment has not been made.
  • Same day or shortly after: Goods taken into control under a Controlled Goods Agreement or secured / removed.
  • Following days: Payment, settlement or sale arrangements finalised.

Note: “Seven clear days” excludes Sundays and Bank Holidays.

CRAR and Tenant Insolvency

CRAR cannot be used where the tenant is subject to formal insolvency proceedings, including:

  • Company Voluntary Arrangement (CVA)
  • Administration
  • Liquidation (voluntary or compulsory)
  • Bankruptcy (for sole traders)

Attempting CRAR during an insolvency moratorium or administration can expose landlords to legal risk. In these situations, alternative remedies — such as lease forfeiture — may need to be considered.

Practical tip: Before issuing a CRAR notice, confirm the tenant’s insolvency status via Companies House, the Insolvency Register, or an up-to-date credit check.

Under the majority of CRAR instructions we conduct, matters are resolved at an early stage by payment in full or a negotiated arrangement following engagement with the tenant. Removal or securing of goods on site is comparatively rare and is typically considered only where there has been a clear, wilful refusal to pay or meaningful engagement has broken down.

The guidance below explains the statutory position and safeguards that apply where negotiations fail and enforcement escalation becomes necessary.

Ownership of Goods, Third-Party Claims and Safeguards

A common concern with large-value CRAR is whether stock may later be alleged to belong to a third party (for example, retention of title or sale-or-return). Below is how the statutory framework deals with ownership, how third-party claims are managed in practice, and the safeguards applied to protect the landlord and keep enforcement defensible.

Negotiation-first approach Escalation only where justified CPR Part 85 / Schedule 12

1) Establishing a Reasonable Basis for Ownership on Site

CRAR operates through the statutory “taking control of goods” framework in Schedule 12 to the Tribunals, Courts and Enforcement Act 2007, supported by the Taking Control of Goods Regulations 2013.

A key statutory safeguard is that an enforcement agent may only take control of “goods of the debtor”( Schedule 12, paragraph 10). In practice, this requires a clear and reasonable basis for treating the goods as belonging to the tenant company at the time control is taken.

On site, our agents establish and record that reasonable basis through a combination of:

  • Debtor representations, including any confirmation given on site as to ownership.
  • The nature and use of goods in the trading premises (e.g. stock held out for sale as part of the tenant’s business).
  • Absence of any contemporaneous ownership challenge at the time of entry.
  • Inspection (where available) of invoices, delivery notes, supplier paperwork, stock lists, asset registers or accounts.
  • Consistency between goods present and the tenant’s trading activity, branding, point-of-sale systems and overall trading footprint.

The legal test is not absolute proof of ownership, but whether the enforcement agent is entitled, on the facts available at the time, to treat the items as “goods of the debtor”. Any subsequent ownership dispute is addressed through the statutory third-party claim process, rather than retrospectively invalidating the taking control of goods.

2) Third-Party Claims (ROT / Sale-or-Return): How They’re Identified and Handled

Third-party ownership issues (including retention of title and sale-or-return arrangements) are addressed through a defined statutory process. Disputes are not determined informally on site.

Claims raised before / during attendance

Where a claim is raised at the point of enforcement, we ask for it to be made in writing and supported by evidence (for example: supplier invoices, delivery terms, ROT clauses, consignment paperwork). Where a claim appears credible and evidenced, the relevant items are not removed pending resolution.

Claims raised after control is taken

Where ownership is challenged after goods have been taken into control, the statutory route is through Schedule 12 and CPR Part 85(claims to controlled goods), including court determination where a claim is disputed.

Statutory route (in plain English)

  • Schedule 12, paragraph 60 provides the mechanism by which a third party may apply to the court asserting that controlled goods are not goods of the debtor.
  • CPR Part 85 sets out the procedure for notice of claim, evidence, responses, and court determination where disputed.
  • The scheme does not require the landlord to prove ownership retrospectively; a supported third-party claim is dealt with through the court process.

3) Safeguards in Place to Protect the Landlord

  • Statutory authority: CRAR is a landlord-only remedy created by statute and exercised through the Schedule 12 framework.
  • Agent responsibility: Decisions as to what goods are taken into control, secured, removed or sold are enforcement decisions taken by the certificated enforcement agent, not the landlord.
  • Staged enforcement: CRAR can proceed incrementally and proportionately, with escalation only where justified.
  • Documented inventories and notices: Goods taken into control are properly inventoried and documented, with contemporaneous notes supporting the basis for control.
  • Court-based dispute resolution: Ownership disputes are resolved through the statutory third-party claim process rather than by informal allegation or retrospective liability.

It is also relevant that where a tenant has confirmed ownership on site, refused to make payment, and declined to enter into a Controlled Goods Agreement, they are unlikely to be viewed favourably if a later unsupported ownership challenge is raised.

Practical on-site defensibility

Evidence, inventories and clear rationale to support “goods of the debtor” decisions — and a structured process if ownership is later disputed.

What we ask for (when available)

  • Recent supplier invoices / delivery notes
  • Stock records / asset lists
  • Any ROT notices received
  • Any known consignment arrangements

Annex – Key Legislative References

Schedule 12 (TCEA 2007)

CPR Part 85 (Claims to Controlled Goods)

Procedure for claims to controlled goods (including notice requirements and court determination).
View CPR Part 85 on justice.gov.uk

Taking Control of Goods Regulations 2013

Supporting regulations governing the taking control regime, including duties relating to the care and treatment of goods after control(e.g. Regulation 34).
View the Regulations on legislation.gov.uk

CRAR vs Lease Forfeiture: Comparison for Commercial Landlords

This comparison sets out two commonly used remedies where commercial rent arrears arise: Commercial Rent Arrears Recovery (CRAR) and Lease Forfeiture. The right option depends on whether the landlord’s priority is recovering arrears, regaining possession, or managing wider risk.

Debt recovery vs possession Regulated process vs higher judgment risk Staged options available
Feature CRAR Lease Forfeiture
What is it? A statutory procedure allowing enforcement agents to take control of a tenant’s goods to recover rent arrears, without issuing a court claim to start enforcement. The landlord terminates the lease and regains possession (commonly by peaceable re-entry or court proceedings), usually due to non-payment of rent or another breach.
Legal basis Statutory remedy under the Tribunals, Courts and Enforcement Act 2007(CRAR regime). Common law and the forfeiture clause in the lease, plus statutory constraints (e.g. Section 146 in non-rent cases).
When can it be used? Generally for purely commercial premises under a written lease, where qualifying rent is overdue and statutory notices can be served. For breach of lease (commonly non-payment of rent). Peaceable re-entry must be lawful and carefully controlled, or forfeiture can be challenged.
What can be recovered? Rent arrears(and associated sums permitted under the regime) — typically not service charges or insurance rent. Forfeiture ends the lease and restores possession. Arrears are usually pursued separately (e.g. as a debt claim).
Speed Notice-driven: a Notice of Enforcement is required before attendance (including “7 clear days” in most cases). Can be rapid if lawful peaceable re-entry is available and the landlord is ready to take back possession immediately.
Outcome Tenant remains in occupation. Goods may be controlled / secured / removed for sale to discharge the rent arrears. Tenant loses possession. The landlord regains the premises and can re-let (subject to legal and practical constraints).
Risk level (typical) Generally lower where statutory steps are followed and ownership issues are managed through the Part 85 / Schedule 12 process. Often higher if peaceable re-entry is mishandled (risk of unlawful exclusion / relief from forfeiture applications).
Ideal use case Landlord wants to recover arrears while keeping the tenant trading (or at least keeping possession stable). Landlord wants the premises back quickly, to re-let, redevelop, or prevent further losses.
Get Started

Instruction Form

Completing this form allows us to review your instruction and advise on next steps. No action is taken, and no obligation is created, until everything has been confirmed with you.

Where instructions relate to Commercial Rent Arrears Recovery (CRAR), all matters are handled in accordance with our CRAR Terms and Conditions of Instruction.

After submission, we will provide a draft warrant for your review and confirmation. Once approved, our team will proceed and keep you informed at each stage.

As part of our standard compliance checks, we may request further information where required to ensure the instruction can proceed smoothly and lawfully.

If you would prefer to discuss your situation before proceeding, you are welcome to contact our team at help@ukbailiffs.org.

If you are unsure whether CRAR is the appropriate route, you may wish to use our free Interactive CRAR Determination Tool before submitting your instruction.

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FAQ

CRAR — Frequently Asked Questions

These FAQs explain CRAR at a high level. They are general information only and are not legal advice. If your matter is time-sensitive or contested, consider obtaining advice from your solicitor.

What is CRAR? Open

Commercial Rent Arrears Recovery (CRAR) is a statutory procedure introduced in April 2014 that replaced the former common law remedy known as distress for rent. It is a remedy that allows certain commercial rent arrears to be recovered by taking control of goods, without applying to the court for permission.

Note: CRAR is subject to specific qualifying conditions and notice requirements.

Do I need a court order to instruct enforcement agents under CRAR? Open

In general, CRAR does not require a court order to be obtained first. However, CRAR can only be used where the statutory requirements are met.

Under what circumstances can CRAR be used? Open

CRAR is intended for commercial premises and typically requires a written lease. If the premises are residential or mixed-use, CRAR may not be available and alternative recovery routes may be required.

CRAR generally applies to recovery of rent (and certain associated sums such as VAT and interest where applicable under the statutory framework). If you need to pursue other sums (for example, service charge or insurance rent), this is usually dealt with separately.

There are minimum arrears thresholds and timing rules. We will review the instruction information and supporting documents to confirm whether CRAR appears available.

What does “taking control of goods” mean? Open

Taking control of goods is the legal process by which a certificated enforcement agent secures goods belonging to the debtor, so that they can be used to recover the sums due if payment is not made.

If payment is not received, controlled goods may be sold in accordance with the applicable regulations, with proceeds applied toward the debt and statutory fees.

Are you required to give the tenant notice? Open

Yes. CRAR requires notice to be given before an enforcement visit takes place, subject to the rules in force at the time and any permitted exceptions.

As a general position, the tenant must receive at least 7 clear days’ notice in writing before enforcement under CRAR can proceed.

Where instructed and the documentation appears in order, we usually aim to issue the notice promptly (often the next working day), subject to operational checks and compliance requirements.

Can anyone take control of goods? Open

No. The regulations require that taking control of goods is carried out by a certificated enforcement agent where certification is required.

Our attending agents are certificated and experienced in commercial rent arrears recovery work.

Can I forfeit the lease if the tenant is unsuccessful under CRAR? Open

CRAR and forfeiture are separate remedies. In broad terms, taking steps that treat the lease as continuing can affect forfeiture options.

If forfeiture is being considered, we recommend that you obtain advice from your solicitor before taking action that could be treated as waiving forfeiture for that period.

When will I receive funds? Open

Where payment is recovered and cleared, client remittances are normally made to the nominated bank account promptly. As a general guide, this is typically within 2 working days of cleared funds being received, subject to reconciliation and compliance checks.

Do you set your own fees? Open

CRAR enforcement fees are prescribed by regulation. Where applicable, statutory fees are generally recoverable from the tenant/debtor in accordance with the regulations.

I want to cancel the instruction Open

If an instruction is cancelled or withdrawn after compliance steps have been taken, statutory fees and/or reasonable costs may remain payable in accordance with the regulations and the terms agreed with the instructing party. If you are considering cancellation, please contact us as early as possible so we can confirm the position based on the stage reached.