How CRAR typically resolves: Under the majority of CRAR instructions we conduct, matters resolve at an early stage by payment in full or a negotiated arrangement following engagement with the tenant. Securing goods on site or removing goods is comparatively rare and is typically considered only where there is clear, wilful refusal to pay or meaningful engagement has broken down. The guidance below focuses on what happens when negotiations fail and escalation becomes necessary.
What is CRAR?
CRAR is a landlord-only remedy that allows recovery of qualifying commercial rent arrears by using the Schedule 12 “taking control of goods” procedure. The statutory gateway is Tribunals, Courts and Enforcement Act 2007, section 72.
In plain English
- CRAR is a regulated statutory enforcement route (not a court claim and not forfeiture).
- It is designed to drive resolution through payment/arrangement, backed by the ability to take control of tenant goods.
- The process is structured so disputes (e.g. third-party ownership claims) are channelled into a defined court procedure if required.
Eligibility: when CRAR can be used
CRAR is powerful when it applies — but it is technical. Most failed CRAR attempts come down to eligibility mistakes, mixed-use premises, or incorrect sums being claimed.
Core checkpoints
- Commercial premises: CRAR is for commercial premises; mixed-use needs careful assessment.
- Correct debtor: the tenant under the lease must be the debtor (right legal entity and trading name).
- Rent arrears: only qualifying rent can be enforced under CRAR (see next section).
- Notices: Notice of Enforcement must be served correctly before attendance (see timeline).
- Insolvency: certain insolvency events/moratoriums can restrict enforcement — verify before escalation.
Common landlord pitfalls (and how to avoid them)
- Claiming non-rent sums: service charge/insurance/dilapidations often need separate recovery routes.
- Wrong party instructed: assignments/transfer of reversion can raise standing questions if paperwork is unclear.
- Mixed use assumptions: “shop with flat above” needs a proper look at use and access.
- Weak site intelligence: shutters, access, security, and trading hours materially affect outcomes.
Qualifying rent: what CRAR can (and can’t) recover
CRAR is aimed at “rent” payable under the lease, not every sum a tenant might owe. A defensible CRAR instruction starts with a clean rent statement and clarity over VAT/interest.
Usually suitable for CRAR
- Base rent reserved by the lease.
- VAT on rent where applicable.
- Interest on rent where properly due and clearly evidenced (instruction-specific).
Commonly not suitable for CRAR (often separate recovery)
- Service charge, insurance rent, utilities or recharge items (unless clearly defined as “rent” for CRAR purposes in the specific lease structure).
- Damages, dilapidations, penalties or disputed sums requiring determination.
- Other contractual debts owed by the tenant outside the rent reservation.
Best practice: provide a clean schedule separating “CRAR rent” from “non-CRAR sums” so enforcement remains defensible.
Notices and timeline (what happens and why)
CRAR runs through the Taking Control of Goods framework. Notices create the legal runway for enforcement, and they are often where cases succeed or fail.
Typical staged timeline (high level)
- Compliance stage: instruction validation, rent schedule check, and service of Notice of Enforcement.
- Engagement window: tenant has an opportunity to pay or propose arrangement before attendance.
- Enforcement attendance: agents attend, seek resolution, and (if needed) take control of goods.
- Control outcome: CGA / inventory / staged plan. Escalation only if justified.
The Taking Control of Goods Regulations 2013 provide the procedural rules for the taking control regime. View the Regulations.
Entry and attendance: what agents can do on site
CRAR enforcement is carried out by certificated enforcement agents. Entry and control are governed by the Schedule 12 framework and supporting regulations. Practical outcomes depend heavily on access, trading hours, and how the tenant engages.
What “peaceful access” usually means in practice
- Access granted by staff/occupier during normal business engagement.
- Access via an open door/public trading area (case-specific and controlled).
- Where access is refused, options and proportionality must be assessed before escalation.
How to increase success on day one
- Provide trading hours, alarm/shutter notes, and named contacts.
- Confirm whether there is a rear entrance/loading bay.
- Confirm stock profile/value and whether any suppliers routinely assert ROT.
- Tell us if a lock change is planned separately (avoid cross-remedy mistakes).
Taking control of goods and Controlled Goods Agreements (CGA)
Taking control is the point where the case becomes formally enforceable against goods. The statutory safeguard is that agents may only take control of “goods of the debtor” (Schedule 12, paragraph 10).
Key safeguard: An enforcement agent may only take control of “goods of the debtor”. Schedule 12, paragraph 10.
What agents record for defensibility
- Tenant statements/admissions as to ownership (where made).
- Inventory and location of goods; reasonable basis for “goods of the debtor”.
- Evidence markers: branding, POS systems, stock presentation, supplier paperwork (when available).
- Any contemporaneous challenge to ownership and how it was handled.
Where a CGA fits
- A CGA is commonly used to keep goods on site while driving payment or arrangement.
- If a tenant refuses to sign a CGA, the case can still progress, but escalation decisions should be staged and proportionate.
- Staged planning reduces risk and avoids unnecessary costs.
Escalation: securing goods on site, removal, storage and sale
Escalation is typically reserved for cases where negotiation fails and there is a justified enforcement need (e.g. wilful refusal to pay, non-engagement, or risk of dissipation). When goods are under control, duties apply to keep them in appropriate condition and take reasonable care (see Regulation 34).
When escalation is usually justified
- Clear refusal to pay anything despite ability to engage.
- Refusal to enter a CGA and meaningful engagement has broken down.
- Risk of goods being moved, concealed or dissipated.
- Need to preserve value and prevent ongoing losses.
Care of controlled goods (Regulation 34)
The Taking Control of Goods Regulations 2013 include duties concerning the care and treatment of goods while they remain under control (including Regulation 34). View Regulation 34.
- Inventory and condition recording before movement/storage.
- Secure handling and chain-of-custody where removal occurs.
- Proportionate decisions to preserve value and reduce dispute risk.
Decision points we recommend agreeing with landlords
- Stage A: Negotiate payment/arrangement and set a clear deadline for response.
- Stage B: Take control/inventory and confirm escalation triggers (e.g. refusal to pay, interference, stock movement).
- Stage C: Secure on site vs remove (based on risk, practicality, and proportionality).
- Stage D: Sale route (auction/sale arrangements) only once statutory steps are satisfied and disputes are addressed.
Ownership of goods, ROT / sale-or-return, and third-party claims
A common concern with high-value CRAR is whether stock is held on retention of title, sale-or-return, or consignment terms. The statutory framework limits control to “goods of the debtor” and provides a defined court process for third-party claims.
Statutory safeguard: Only “goods of the debtor” may be taken into control. Schedule 12, paragraph 10.
How agents assess ownership on site (defensible approach)
- Tenant statements/admissions at attendance.
- Trading footprint: stock held out for sale by the tenant’s business.
- Absence of contemporaneous third-party challenge at the time of entry.
- Supplier paperwork where available (invoices, delivery notes, terms, ROT notices).
- Consistency with branding, POS systems, and stock presentation.
How claims are handled (formal route)
- If a third party claims controlled goods are not the debtor’s, the mechanism is Schedule 12, paragraph 60: view paragraph 60.
- Civil Procedure Rules Part 85 provides the procedure for claims to controlled goods (notice, response, dispute and court determination): view CPR Part 85.
- Credible claims should be evidenced in writing (ROT clauses, invoices, delivery terms). Disputed claims are resolved via the court procedure rather than informal allegation.
Landlord safeguard (why the process is designed this way)
The statutory scheme anticipates ownership disputes and provides a structured court route to determine them where necessary. In properly conducted CRAR, the question is whether there was a reasonable basis at the time to treat items as the debtor’s goods, with any later supported dispute addressed through the Part 85 process.
Insolvency: flags that can restrict enforcement
Insolvency status can materially affect CRAR. If insolvency is suggested (or threatened), it should be verified and the instruction reviewed before escalation.
Practical verification steps
- Check Companies House filings and insolvency notices (dates matter).
- Ask for insolvency practitioner details if claimed.
- Don’t treat “we’re going into administration” as proof — verify status and timing.
- Where a moratorium may apply, seek specialist advice before proceeding.
Good practice for landlords
- Keep your rent schedule clean and dated — it often becomes evidence.
- Agree decision points early (especially before incurring storage/auction costs).
- If a NOA/NOI/moratorium is mentioned, pause escalation and verify immediately.
Fees and costs: regulated stages and common disbursements
Taking Control of Goods fees are prescribed by regulation. The primary schedule is in the Taking Control of Goods (Fees) Regulations 2014. View the fees schedule.
Regulated fee stages (overview)
- Compliance stage
- Enforcement stage
- Sale or disposal stage
Exact figures and percentage thresholds are set out in the fees schedule linked above.
Common disbursements (case dependent)
- Locksmith attendance (access / security)
- Transport and handling (where removal occurs)
- Storage (secure warehousing)
- Auction/sale costs (as applicable)
Best practice: agree “go/no-go” decision points before incurring significant third-party costs.
Landlord / property manager checklist (send this with your instruction)
This is the fastest way to make CRAR succeed cleanly and defensibly.
- Lease pack: lease, any variations, rent schedule, VAT position, interest clause (if relied upon).
- Arrears schedule: clear statement showing qualifying rent vs other sums.
- Landlord standing: if landlord name differs from the lease, provide transfer/assignment evidence.
- Site intelligence: trading hours, access points, shutters/alarms, onsite security, loading bays.
- Stock profile: approximate stock type/value and any known ROT/consignment arrangements.
- Contacts: tenant contacts, managing agent, keyholder, and preferred comms route for decision points.
- Insolvency check: confirm current position and provide any IP details if known.
Primary sources (official links)
- TCEA 2007, section 72 (CRAR gateway) — legislation.gov.uk
- TCEA 2007, Schedule 12 (Taking control of goods) — legislation.gov.uk
- Schedule 12, paragraph 10 (“goods of the debtor”) — legislation.gov.uk
- Schedule 12, paragraph 60 (third-party claims mechanism) — legislation.gov.uk
- Taking Control of Goods Regulations 2013 — legislation.gov.uk
- Regulation 34 (care of controlled goods) — legislation.gov.uk
- Taking Control of Goods (Fees) Regulations 2014 (Schedule) — legislation.gov.uk
- CPR Part 85 (claims on controlled goods) — justice.gov.uk
