Schedules of Condition

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. Avoiding potential disputes and costly claims for damages during the team or at the end of a lease. This is often 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 it should be returned at lease end, by the tenant.

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.

Preparation of 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 and can be used to ascertain fairly whether damage has occurred, avoiding any potential disputes which may arise.