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PACT - Lease Renewal Disputes

PACT - Lease Renewal Disputes

Professional Arbitration on Court Terms (PACT) is a joint initiative set up by RICS and the Law Society as a form of alternative dispute resolution (ADR) for lease renewal disputes.

What is PACT?

PACT is a process where the determination of all or some of the terms of a renewal lease is (with the consent of both parties) ‘delegated’ to an independent third party who may act either as an arbitrator or as an independent expert.

The Regulatory Reform Order 2003 abolished the need for the tenant to make an early originating application to the courts. In effect, the parties can now agree to refer their lease renewal matter to arbitration or determination and be bound by the result.

Parties are no longer required to obtain a consent order from the courts, in all circumstances.

PACT offers a viable alternative to litigation and can be used to resolve disputes in the following matters:

  • Duration of a new lease
  • Rent / interim rent
  • Drafting
  • Repair
  • Service Charge
  • Alienation
  • Break clauses
  • Other terms of the new tenancy
  • Detailed drafting of the provisions to be included in the new tenancy
  • Or a combination of the above

The professionals appointed are experienced specialists who have been specifically trained on commercial lease renewals under the PACT scheme. It is important to note that any decision made by either an arbitrator or independent expert is legally binding.

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, tenants and to their advisers through the lease renewal process.

Surveyors and lawyers involved in tenancy renewals under PACT

Why use PACT?

PACT offers a quick, efficient and cost-effective solution to your commercial lease renewal dispute without the need to go to court.

Parties who opt to use PACT can have their dispute resolution by a professional who has expertise in the subject matter, without the need to go to court.

Benefits of using PACT:

  • Flexible – parties can choose whether a lawyer or surveyor is appointed and whether they act as an arbitrator or independent expert.
  • Quick – PACT can be set up speedily and should be less time consuming than going to court.
  • Expert decisions – only professionals with high levels of knowledge and experience in the subject matter are appointed.
  • Adaptable – the scheme allows bespoke solutions to be developed to suit the needs of the parties.

Contact the DRS team

  • RICS Dispute Resolution Service
    55 Colmore Row
    B3 2AA
  • Call: +44 (0) 20 7334 3806
  • Email us