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.
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:
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.
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.