Definition

PACT is a voluntary scheme that allows landlords and tenants to bypass the County Court when resolving disputes about the terms of a new lease under Part II of the Landlord and Tenant Act 1954. Instead of a judge determining the disputed terms, the parties jointly apply to the President of RICS, who appoints a suitably qualified surveyor to act as arbitrator under the Arbitration Act 1996, or as independent expert if the parties prefer. The decision is final and binding, with the same enforceability as a court judgment.

Why this matters for Conflict Avoidance, Management and Dispute Resolution

  • PACT is a specific, examinable example of how RICS-qualified professionals act as decision-makers in formal dispute resolution — demonstrating the breadth of the surveyor's role.
  • APC candidates in commercial property, landlord and tenant, and valuation pathways are particularly likely to encounter PACT in practice.
  • PACT demonstrates the RICS's role not just as a professional regulator but as an appointments body for dispute resolution.
  • Understanding PACT reinforces the principle that proportionate, expert-led resolution is preferable to litigation for technical property disputes.

Key principles

When PACT applies

PACT is available only where the tenant has the right to renew under Part II of the Landlord and Tenant Act 1954 and the renewal is unopposed — the landlord is not relying on any ground in section 30(1) to oppose renewal. Both parties must agree in writing to use PACT. It is most commonly used where the only matters in dispute are the commercial terms of the new lease: rent, length, break clauses, user clauses and repairing obligations.

Arbitrator or independent expert?

The parties choose whether the appointed surveyor acts as arbitrator or independent expert. As arbitrator under the Arbitration Act 1996, the surveyor follows a quasi-judicial process: parties submit evidence and representations, and the arbitrator reaches a decision they are bound by. As independent expert, the surveyor may use their own expertise and investigations without being limited to submitted evidence. Independent expert proceedings tend to be faster and cheaper; arbitration offers a more formal process and limited appeal rights on points of law.

The appointment and independence requirement

Either party applies to the President of RICS, who appoints through the RICS Dispute Resolution Service. The appointed surveyor must be independent of both parties and must declare any conflict of interest before accepting the appointment. Accepting an appointment whilst holding an undisclosed connection to one party would be a serious breach of the RICS Rules of Conduct and the Conflicts of Interest global professional statement.

Relevant RICS guidance and legislation

  • Landlord and Tenant Act 1954, Part II — provides the right to renew business tenancies and the framework within which PACT operates.
  • Arbitration Act 1996 — governs PACT proceedings where the surveyor acts as arbitrator.
  • RICS Dispute Resolution Service (DRS) — administers PACT appointments on behalf of the President of RICS.
  • RICS Rules of Conduct (effective 2 February 2022) — independence and impartiality requirements apply to surveyors acting in PACT proceedings.
  • RICS Conflicts of Interest global professional statement (1st edition, 2017) — surveyors must confirm there is no conflict of interest before accepting a PACT appointment.

Ethics and Rules of Conduct angle

A surveyor appointed under PACT owes their primary duty to the process, not to either party. They must be, and be seen to be, independent and impartial — declaring any conflict of interest before accepting the appointment and conducting proceedings with honesty, fairness and transparency. An undisclosed connection to one of the parties would be a serious professional conduct breach under the RICS Rules of Conduct and the Conflicts of Interest global professional statement.

APC-style Q&As

Q (Level 1)What is PACT and when can it be used?

PACT (Professional Arbitration on Court Terms) is a voluntary scheme that allows parties to resolve disputes about the terms of a business lease renewal under the Landlord and Tenant Act 1954 without going to court. It can only be used where the renewal is unopposed and both parties agree to the process in writing.

Q (Level 1)Who appoints the PACT arbitrator or independent expert?

Either party may apply to the President of RICS, who appoints a suitably qualified surveyor through the RICS Dispute Resolution Service. The appointed surveyor must be independent of both parties.

Q (Level 2)What is the difference between a surveyor acting as arbitrator and as independent expert in a PACT dispute?

As arbitrator under the Arbitration Act 1996, the surveyor is bound by the evidence and representations submitted by the parties. As independent expert, the surveyor is not limited to submitted evidence and may use their own expertise and investigations. Independent expert proceedings tend to be faster and cheaper; arbitration offers a more formal process and limited rights of appeal on points of law.

Q (Level 2)Can PACT be used where the landlord is opposing the lease renewal?

No. PACT is only available for unopposed renewals — where the landlord accepts the tenant's right to renew and the dispute is solely about the terms of the new lease. If the landlord is relying on a ground in section 30(1) of the Landlord and Tenant Act 1954 to oppose renewal, that issue must be determined by the court before the terms of any new lease can be considered.

Q (Level 3)You are appointed as independent expert under PACT to determine the rent on a new lease. On reviewing the comparables, you identify that both parties' submissions omit a recently settled lease that is directly comparable. What do you do?

(example) As independent expert, I am not limited to the evidence submitted by the parties. I would disclose the additional comparable to both parties and invite them to comment before placing any weight on it in my decision. This ensures procedural fairness without restricting my ability to reach a well-evidenced conclusion. I would document the weight given to each comparable in my decision. Had I been appointed as arbitrator rather than independent expert, I would be limited to submitted evidence and would need to invite further submissions before relying on the comparable.