Schedules of Condition

Per definition, a Schedule of Condition survey is a way for Landlords and Tenants to protect themselves and their interests, by outlining and agreeing the state of a property and any potential repair work which might be needed, at the outset of a letting.

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:

1 Leases: Help protect both the Landlords and Tenants interests and establish a tenant’s repairing obligation and any obligations for reinstatement works under a lease. Avoiding potential disputes and costly claims for damages during the term or at the end of a lease.

2 Construction: 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.

3 Party Wall: 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, therefore avoiding potential disputes arising or uncertainty.

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.

Are you about to Rent a Property?

Commercial Tenants should consider taking professional advice before committing to a full repairing lease, especially if the property is in poor repair.

What are the benefits of a Schedule of Condition?

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Our Chartered Building Surveyors are experienced in the preparation of Schedules of Condition surveys which need to be properly considered and prepared if they are to fulfil their intended purpose.

For further information regarding a property project or lease and whether an accurate Schedule of Condition is advised, please contact the team today for advice.

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