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Schedules of Condition

T: 0161 518 8671

E: bc@roger-hannah.co.uk

 

If you are in the process of letting a property, undertaking building works or works to a party wall structure, it is essential you understand the importance of having a Schedule of Condition.

 

Benefits of a Schedule of Condition

What is a Schedule of Condition?

A Schedule of Condition provides a detailed record of a property or building at a specific point in time. Typically, a Schedule of Condition includes a written description with photographs that show the condition of the various elements of a property or structure.

 

The purpose of a Schedule of Condition is to provide an accurate record of the property’s condition, for Landlords and Tenants to protect themselves and their interests in the event of a dispute and/or claim for damages in the future.

 

This very process applies to both commercial properties and residential properties. In fact, Schedules of Condition can be prepared following the instructions of residential commercial property entities.

 

The benefit of having an accurate Schedule of Condition is that it provides a benchmark against which the condition of a property, structure or land can be assessed against and which can help mitigate future repairing obligations and/or potential claims for damages in 3 main areas:

 

Leases: It can help protect both the landlords and tenant’s interests and establish a tenant’s repairing obligation and any obligations for reinstatement works under a lease. It also avoids potential disputes and costly claims for damages during the term or at the end of a lease.

 

Construction: A Schedule of Condition can protect against potential claims for damages after works have begun and establish any liability and the extent of remedial works needed in the event of damage being caused as a result of the works.

 

Party Wall: It can provide evidence of the existing condition prior to the works beginning and can be used to ascertain whether damage has occurred, together with the extent of any remedial works that may be needed. This can help to avoid potential disputes or uncertainty.

Commercial Lettings

A Schedule of Condition is often used in real estate transactions, when a tenant is taking on a lease for a property.

 

The Schedule of Condition is a way for both landlords and tenants to protect themselves and their interests by outlining and agreeing the state of a property at the outset. As it avoids potential disputes and costly claims for damages during the team or at the end of a lease, this can be invaluable where the property being leased is not new and subject to age related wear.

 

Commercial leases often place a responsibility upon the tenant to keep a property in repair, regardless of the condition at the beginning of the lease. However, it may be possible to limit the tenant’s liability to handing back the building in no better or worse condition than at commencement by preparing a Schedule of Condition, which is then engrossed in the lease.

 

Conversely, a Schedule of Condition can help a landlord where the property to be leased is new, or refurbished to a good standard of repair, which can be evidenced in a Schedule of Condition and the standard of repair that it should be returned at lease end, by the tenant.

Construction Works

When undertaking construction works, it is good practice to prepare a Schedule of Condition to record the condition of existing neighbourly structures and properties prior to works being undertaken.

 

This can help protect against potential claims for damages after works have begun and can also be used to establish any liability and the extent of remedial works needed in the event of damage being caused as a result of the works.

Party Wall Structures

The Party Wall etc. Act 1996 provides a framework for resolving disputes between property owners and developers in relation to party walls and structures.

 

In the event of a dispute arising under the Act, the onus is on the building owner undertaking work to prove any damage to a neighbouring property wasn’t caused by the works.

 

Preparing a Schedule of Condition prior to undertaking any works to an existing party wall, structure and/or adjacent excavation works is essential to provide evidence of the existing condition prior to commencement. It can be used to ascertain fairly whether damage has occurred, avoiding any potential disputes that may arise.

Who should prepare a Schedule of Condition?

It is recommended that a Schedule of Condition is prepared by an independent chartered surveyor. This is because a Schedule of Condition is intended to be an impartial, factual record of the property’s current condition and requires experience to prepare concisely.

 

Schedule of Condition in Manchester

If you need any further advice regarding a Schedule of Condition, our RICS-qualified surveyors can advise you on all aspects of obtaining one prior to the signing of a new lease or undertaking works.

 

Our experienced property surveyors carry out a range of services in the North West and across the UK, working with both commercial and residential clients. For more information about your property project or lease, and whether a Schedule of Condition is advised, get in touch with our team.

 

Key contacts

Neil O’Brien

BSc (Hons) MRICS IMAPS MPTS

  • Director

Steven Whittle

BSc (Hons) MSc MRICS

  • Director

James Rowcroft

BSc (Hons) MRICS

  • Associate Director

Phil O’Brien

BSc (Hons) MRICS

  • Associate Director

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