On 6 April2014 there will be a new dawn for commercial rent recovery. The new regulations abolishing the ancient law of distress come into force on that date. For details see my blogs of 3 March 2013 click here and 17 September 2013 click here.
It will no longer be possible to send in the Baliffs without notice to distrain on goods to recover rent and other arrears under a commercial tenancy.
All the required regulations are being put into place. The second of 3 sets were made last month. The Taking Control of Goods (Fees) Regulations 2014 set out the fees payable by the debtor to the enforcement agent at each stage of the new process.
The fees payable by the tenant debtor depend on whether the enforcement is under a High Court Writ.
The compliance stage is all activities realting to enforcement from the receipt of the enforcement agents of instructions. The enforcement stage is all activities relating to enforcement from the first attendance at the premises, but not including the commencement of sale or disposal stage. The sale or disposal stage begins on the first attendance at the property for transporting goods or preparation of sale on the premises.
For High Court Writs there are 2 stages for enforcement. If the enforcement agent and debtor enter into a controlled goods agreement, the first enforcement stage applies. If there is no such agreement, or it is breached, the second enforcement stage kicks in.
In addition the enforcement agent can recover "disbursements" These are the expenses reasonably and actually incurred for storing goods, hiring a locksmith to gain access to premises when using reasonable force to enter them, and court fees incurred by the enforcement agent applying to court in relation to enfocement powers. Also recoverable are the auctioneers expenses incurred in any sale such as commission, out of pocket expenses, and advertisement fees. There is also provision for recovery of commission of 7.5% for internet or other sales.
The last piece of the jigsaw will be the regulations covering certification to work as an enforcement agent. These are expected shortly.