Distraint Path

When to use this path

• The tenant is in default and you intend to pursue distraint while the tenant occupies the premises.

Important: Distraint must be initiated while the lease is active and the tenant occupies the premises.

Before you start

Have ready (as applicable): warranty number, lease, key dates, current account statement, and a tenant communication log.

Steps + timelines

1) Document your enforcement and outreach (Operator)

Make a documented effort to resolve the balance directly with the tenant.

2) Notify Padder (time-sensitive)

Submit the Tenant Default Notification within 16 days of the payment’s original due date (or the period specified in the lease).

• Select Distraint as your planned enforcement path.

3) Coordinate on next steps (Padder + Operator)

Padder will support communication and document outcomes.

4) Initiate distraint (Operator)

Proceed with distraint using a bailiff and in compliance with lease and statutory requirements.

5) Sell seized assets (Operator)

Sell assets at auction and apply proceeds to arrears, deducting allowable costs (e.g., bailiff and auction expenses).

6) Submit your Comprehensive Request (time-sensitive)

Submit both your Initial Request and Final Request together (covers remaining arrears + eligible costs) within 30 days of auction completion.

Required uploads (Distraint):

• Original signed lease agreement

• Notice to the tenant regarding distraint proceedings

• Bailiff report (seized items + valuation)

• Proof of auction (proceeds + itemized sales records)

• Accounting showing proceeds applied to arrears and allowable costs

• Up-to-date account statement

Common reasons for delay

• Notification submitted after Day 16

• Distraint initiated after tenant vacates / lease ends

• Missing bailiff report or auction records

• Incomplete accounting of proceeds and costs