Real estate study Coursework Example | Topics and Well Written Essays - 2000 words

Real estate study - Coursework Example The tenant has defaulted on this quarters rent (due on 25 March 2015) as well as defaulting on its service charge and insurance contributions which were also reserved as rent. Tenant default is defined as the breach of agreement of the tenancy contract (The Law Commission, 2006). Spotted Dice Limited has breached the agreement with Lansbury Towers when the former defaulted with the rent payment, service charge, and insurance contributions. It is very important that the Landlord will carefully consider the action needed. In order for this to happen, the landlord should assess whether the default made by the tenant is just temporary or the tenant wants to terminate the lease (Green 2012). Without commencing any court proceedings, there are different remedies available to the management of Lansbury Towers where the tenant Spotted Dice Limited is in default such as forfeiture, levying distress, recovery as a debt, recovery from third parties, negotiations, surrender and reduction of rent (Cass 2013). Most of the lease contract contains a clause that will entitle the landlord to forfeit the lease in case of default. This remedy is considered one of the fastest, simplest and cheapest which will only require locks and notice to the premise (Cass 2013). â€Å"The right of landlord to forfeit arises: However, under Section 146 of the Law of Property Act of 1925, the landlord’s right to forfeit in respect to tenant’s default and breach of contract will not be enforceable unless a notice containing the following is served on the tenant: The Commercial Rent Arrears Recovery (CRAR) provides the new process for landlords of commercial premises such as Lansbury Towers to recover tenant’s default by taking control of tenant’s goods. There should be no residential element and CRAR requires lease of commercial premises and recovery for principal rent for it to apply. This remedy is very handy as it only requires transparency of process through a notice given