Protecting commercial tenants' goods - Further Covid-19 temporary legislation

The Taking Control of Goods and Certification of Enforcement Agents (Amendment) (Coronavirus) Regulations 2020 has introduced temporary legislation to restrict commercial Landlords exercising their rights to seize and take their Tenants’ goods when their Tenants have failed to pay rent.  

The temporary Legislation prevents Enforcement Agents from taking control of goods on a highway or at a residential property in certain circumstances whilst movement restrictions are in place.        

In addition, a Tenant will now need to be 90 days in rent arrears before a Landlord can seek to exercise their right to seize a Tenant’s goods.  

However, all is not lost for Landlords who have a time limit in which they have to exercise their rights under Commercial Rent Arears Recovery (CRAR).  Where Landlords have a certain time period to exercise their rights with Certificates already granted under the earlier Regulations those time limits will be extended.   

The legislation will certainly give Tenants more breathing space but the changes implemented do not prevent Landlords from exercising their rights under CRAR but will merely delay them where a Tenant remains in rent arrears or whereby the Landlord has already obtained a Certificate under CRAR. Any Landlord looking to exercise their rights under CRAR should act cautiously and ensure the 2020 Regulations are complied with.   

You can read more about our recovery of arrears services here.

For more information on waiving the right to forfeiture and the Coronavirus Act read our blog here.

This can all sound very complicated to commercial landlords, and whilst you may not feel that you are ready or in a position to take action, we would always recommend speaking to us for some initial advice as there could be more you could be doing now than you think

For more information contact Sarah Davies, Director & Head of Property Litigation on 01792 529617 or email sarah.davies@jcpsolicitors.co.uk.

Property Litigation expert, Sarah Davies, has developed into one of the most effective specialists in her field of work. Her expertise in property advice and property dispute resolution is seen as an important role in the evolution of the JCP. Sarah advises on a broad spectrum of property matters.