06/02/2023
‘Levying Distress’ under Commercial Property Lease Agreements
Levying distress is an old English law affiliated with lease agreements contracted between a landlord and a tenant on business premises (shops, office space, warehouse etc). In general terms levying distress is a remedy effected by a landlord to a tenant by locking up the premises in circumstances where the tenant has failed to settle rent arrears (for a defined period of time).
The governing law on commercial properties or rather business premises is The Landlord and Tenant (Business Premises) Act Chapter 193 of the Laws of Zambia. But the issue of levying distress on business premises is not addressed in this governing law so how do landlords enforce ‘levying distress’?
Levying distress is an English law provided for in the UK statute Law of Property Act 1888 and it only becomes applicable in Zambia by virtue of The English Law (Extent of Application) Act Chapter 11 of the Laws of Zambia. In short levying distress is a borrowed law. But however, the UK itself has abolished this law and it’s no longer in practice. It then begs the question, why are we still tying ourselves on the neck on a borrowed law which is now abolished.
If you are running a business on a commercial property that you pay rentals to on signed lease agreement you may wish to check thoroughly for a clause which speaks to ‘Levying distress’. Take for instance, if you are a business person running a grocery store and your business suffers some setbacks and you cannot afford to pay your rentals, your landlord (under the signed lease) has authority to take possession of your goods and your shop, close it up until all arrears are paid.
This means that you would have lost not only your goods but also the only means to raise the rent. How do you raise the rent owed if your shop is not operating? Food for thought!
What if we tell you that there is better law which protects you as a tenant from such harsh predicaments as well as the landlord so that he/she does not suffer perpetual loss of income.
Check your lease agreement!
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