Legal Definitions - sequestration for rent

Sequestration for Rent is a specific legal process available to landlords exclusively in Scotland. It serves as a remedy for landlords to recover unpaid rent, allowing them to obtain a court order to seize and sell certain personal belongings of a tenant. The amount of rent that can be recovered through this method is limited to a maximum of one year's unpaid rent.

• Example 1 (Residential Property):

  Ms. Wallace rents an apartment in Glasgow and has fallen four months behind on her rent, owing her landlord, Mr. Clark, a total of £3,200. After repeated attempts to resolve the matter directly, Mr. Clark decides to pursue legal action. He could apply to a Scottish court for a sequestration for rent order. If granted, the court would authorize the seizure and sale of some of Ms. Wallace's personal property found within the apartment, such as her television, sofa, or other household goods, to recover the £3,200 in outstanding rent.

  This illustrates sequestration for rent as a landlord's tool to recover unpaid residential rent by seizing and selling the tenant's personal items under court authority.

• Example 2 (Commercial Property):

  A small independent bookstore, "The Book Nook," operating in Edinburgh, has failed to pay its monthly rent for five consecutive months, accumulating £7,500 in arrears to its landlord, Caledonia Holdings Ltd. Despite formal demands, the bookstore owner has not made any payments. Caledonia Holdings Ltd. could initiate a sequestration for rent action. A court order would then permit them to seize and sell assets belonging to "The Book Nook" located within the premises, such as bookshelves, display units, or the till system, to recover the outstanding rent, up to the one-year limit.

  Here, the term applies to a commercial tenancy, showing how a landlord can recover business rent arrears by seizing and selling the tenant's commercial property.

• Example 3 (Application of the One-Year Limit):

  Mr. Henderson rents a workshop in Dundee from Ms. Davies. He has accumulated 15 months of unpaid rent, amounting to £15,000. Ms. Davies decides to use sequestration for rent to recover her losses. While Mr. Henderson owes £15,000, the legal remedy of sequestration for rent would only allow Ms. Davies to recover up to one year's worth of rent, which in this scenario would be £12,000 (assuming £1,000/month rent). The court would authorize the seizure and sale of Mr. Henderson's tools or equipment from the workshop to cover this £12,000 portion of the debt, but not the full £15,000.

  This example highlights the crucial limitation of sequestration for rent, demonstrating that a landlord can only recover up to one year's worth of unpaid rent, even if the tenant owes more.