Real estate law Coursework Example | Topics and Well Written Essays - 2250 words

Real estate law - Coursework Example to be followed when the rent is defaulted, the provisions available under the break clause for the tenant and what needs to be done by both landlord and tenant when the agreement is made outside of Part II of the Landlord & Tenant Act 1954. As per the Landlord and Tenant Law UK, there have been proposed new procedures for landlords when there is a default from a commercial tenant. It is necessary for the commercial landlords to review their procedures when there is an instance of commercial tenants default in giving rent. The new rules and regulations for commercial tenants default came into existence from April 2012. The name of the new process is given as Commercial Rent Arrears Recovery or CRAR. The rule is being made in such a way that it is only be available in case of pure rent arrears along with any other components associated with the rent, which is considered to be a part of the rental like VAT and interests on rent. However, service charges and insurance would not come under consideration. The CRAR will replace the common law that offers right to the distress of rent (Martin 2009). As far as the distress is concerned it allows the landlord to sell off the goods of the commercial tenant up to the value of the rent without initiating any legal proceedings. With the new law it is mandatory for the landlord to initiate legal proceedings before selling off the commercial tenant’s goods to recover the rent. In this scenario as the tenant, Spotted Dice Limited, is a defaulter of the rent to the landlord, the landlord has every right to file a case against the commercial tenets under the CRAR Act and proceed accordingly to recover the rent and the associated components that come under the rental of the commercial premises (Pawson & Mullins 2010). According to Justice Minister Helen Grant, the aim of the introduction of the new law is to protect the vulnerable people from aggressive bailiffs. In this scenario if the landlord has a written lease or rental