Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Arrears definition

What does Arrears mean? Arrears are sums that have fallen due for payment but remain unpaid after the due date. In legal practice this descriptive term is used across contexts (contractual, statutory and court-ordered), for example rent arrears, service charge arrears, mortgage arrears, council tax or maintenance arrears. Particular regimes may define arrears for their own purposes, but there is no single universal statutory definition. In leases, arrears are amounts reserved by the lease (such as rent, service charge and insurance rent) that the tenant has not paid when due. Leases commonly provide that, once arrears persist for a specified period, the landlord...

Commercial property sales subject to leases: buyer’s guide to tenant arrears—rights, SCPC (3rd ed 2018), risk-sharing, recovery controls and drafting (England and Wales)

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Practice notes

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This Practice Note forms part of a suite that explores commercial property contract clauses from a purchaser’s viewpoint, identifying practical amendments and matters to look out for in practice—see: Buyer’s practical contract negotiation collection. It concentrates on standard provisions, in particular those addressing Arrears in a contract for sale that is subject to leases. In this setting, arrears are sums owed by tenants that have not been remitted to the seller as at completion (including any VAT in respect of those sums). This Practice Note reviews issues emerging from the buyer’s Due diligence on arrears, the position under the Standard Commercial Property Conditions (Third Edition—2018 Revision), how arrears are typically managed in day‑to‑day practice, and it offers pragmatic due diligence and drafting suggestions for buyers. It does not address arrears where a headlease is in play—see instead: Due diligence—head lease rent arrears—checklist.

The right to collect or sue for arrears

The buyer should check exactly how the contract deals with who has the right to collect, or sue for, arrears...

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Web page updated on 21/05/2026

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