Lease Renewals and Rent Review Disputes – what is PACT?
This means Professional Arbitration on Court Terms (PACT) and is a new scheme offered by RICS and the Law Society. This offers an arbitration as opposed to a court route for the resolution of lease renewal and rent review disputes.
The PACT process is aimed at unopposed lease renewals under the Landlord and Tenant Act 1954.
Going to court is often prohibitively expensive, especially for the small commercial letting, so the PACT system is a realistic alternative for the small commercial landlord and tenant.
PACT provides the opportunity for landlords and tenants to have the terms and rent payable under their new lease decided by a surveyor or solicitor acting as either an arbitrator or independent expert.
The appointments can be made by RICS or Law Society. The professionals appointed are experienced specialists who have been specifically trained under the PACT scheme.
The objective of the scheme is to increase the effectiveness and flexibility of the legal system and to give a greater choice to both landlords and tenants and to their advisers.
The scheme is in line with Lord Woolf’s reports on Access to Justice which advocated that litigation should be viewed as a last resort, and also the provisions of the Arbitration Act 1996 and the Civil Procedure Rules for litigation.
PACT is an attempt to streamline the lease renewal process, making it quicker, cheaper and more efficient than going to court.
Apply by downloading and completing a form for the appointment of an arbitrator/independent expert by the President of RICS or the President of the Law Society, or contact RICS Dispute Resolution Services:
T +44 (0)207 334 3806
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