Controlled Goods Agreements (CGA) in Commercial Rent Arrears Recovery
A Controlled Goods Agreement (CGA) is a formal agreement used during Commercial Rent Arrears Recovery (CRAR) where a tenant cannot pay in full immediately. It provides a practical middle ground: the tenant can continue trading, while the landlord’s position is protected if the arrangement fails.
Key point
A CGA should not be viewed as optional paperwork. It is the legal mechanism that converts an informal payment arrangement into a structured and enforceable position, protecting the landlord if the tenant defaults.
Even where a landlord agrees to a repayment arrangement, attendance to take control of goods and complete a CGA is often recommended. This helps protect both parties and avoids the need to restart enforcement from the beginning if payments are missed.
Fees on attendance
Where attendance takes place to take control of goods and complete a Controlled Goods Agreement, further enforcement fees will be added to the case in accordance with the statutory fee regulations. These fees are usually borne by the debtor and are commonly collected on the first payment made under the arrangement.
Important: This page is general information only and is not legal advice. Every case turns on its facts.
What is a Controlled Goods Agreement (CGA)?
A CGA is a written agreement used after an enforcement agent has taken control of goods. The goods usually remain on the premises (in situ) so the business can continue to operate, but they are treated as “controlled” for enforcement purposes. A CGA normally records:
- The goods being controlled (a schedule/list)
- The payment plan (amounts and dates)
- What happens if payments are missed (default terms)
- Access and cooperation expectations
Why the Notice wording can confuse people
Notices often state that if a debtor “pays or agrees an arrangement” an agent may attend. In reality, agreeing an arrangement does not automatically make it secure. A CGA is the formal step that helps protect the arrangement if circumstances change or the plan is broken.
Why landlords/creditors are advised to secure a CGA
- Protection on default: if payments stop, enforcement can often proceed without starting from scratch.
- Clear evidence trail: a documented arrangement and controlled list of goods can strengthen the position if challenged.
- Reduced uncertainty: the arrangement is tied to controlled goods rather than relying solely on goodwill.
- Competing enforcement protection: where goods are lawfully taken under control, other enforcement agents should not remove those goods without proper authority.
- Operational practicality: keeps the tenant trading while maintaining enforcement leverage.
Why tenants/debtors may benefit from a CGA
- Business continuity: goods usually remain in place so the business can keep operating.
- Clear terms: the payment schedule and expectations are recorded, reducing misunderstandings.
- A managed route forward: a CGA can help avoid sudden escalation later if circumstances change.
- Competing enforcement risk: while a CGA cannot stop other debts being pursued, it can reduce uncertainty where multiple enforcement actions arise.
We will always pass reasonable proposals to the landlord. If an arrangement is accepted, a CGA is often recommended so the plan is structured, secured, and less likely to unravel.
Fees and why attendance may lawfully add cost
CRAR operates through staged enforcement. If a case proceeds beyond compliance and an agent attends the premises to take control of goods and complete a CGA, this is typically part of the enforcement stage and can lawfully incur additional charges to the tenant under the statutory fee regime.
For landlords
A CGA can be a sensible cost/benefit decision: it can reduce the risk of default and delay, and it provides a stronger enforcement position if the tenant fails to maintain payments.
For tenants
An attendance to complete a CGA is not “punishment” for engaging. It is the formal step that helps keep the arrangement stable and reduces the risk of sudden escalation later. Fees arise because of the legal stage reached, not because you made an offer.
Tip: If you want, we can add a short “fees summary” panel here linking to your fee calculator page and/or a CRAR fees explainer.
CGA FAQs
If I agree a payment plan, why would you still attend?
Because an informal plan can be unsecured and vulnerable to default or changing circumstances. A CGA documents the arrangement in a formal way and helps protect both sides if payments are missed.
Does a CGA mean my goods will be removed?
Not usually. A CGA normally allows goods to remain on site so the business can continue trading, provided the agreement is complied with.
Does a CGA stop other debts or other enforcement agents?
A CGA cannot guarantee that other creditors will not pursue separate enforcement. However, where goods are lawfully taken under control, other enforcement agents should not remove goods already under control without proper authority.
Will fees increase if you attend to complete a CGA?
If the case proceeds to enforcement attendance to take control of goods and complete a CGA, statutory fees may lawfully apply under the staged fee regime.
Need help with a CRAR arrangement or CGA?
Landlord or tenant, we can explain the process clearly and confirm what information is needed to progress lawfully and proportionately.
