Control of Goods Agreement (CGA) Explained

When a commercial tenant ends up in arrears with their rent then a range of measures can be taken to recover the money owed including seizure of goods or placing them under the control of enforcement agents. This is under what is known as a Control of Good Agreement (CGA).  

Seizure or control of a tenant’s goods is often enough to get them to settle their debts and the latter option at least allows a tenant to retain custody while payment of the outstanding sum is negotiated.  

Under the terms of a CGA, the tenant will have to agree that the enforcement agent is taking control of goods they own and this is important. Anything the tenant doesn’t own cannot be included. Another important thing to consider is that a tenant’s tools they use for their business cannot be placed under the control of the enforcement agent up to a total value of £1,350.  

Also by placing the goods in control of the enforcement agent, the tenant will give up all their rights to remove the goods from the premises until they have paid what they owe.  

A CGA will provide plenty of time for the parties to come to an agreement over when the outstanding sum will be paid with the agreement lasting for 12 months. After this period has passed the enforcement agent will no longer be able to place goods under their control.