A Schedule of Condition is a formal record that details the specifics of the condition of a property at the outset of a lease. It is important for both landlords and tenants as it provides a record of the building at the commencement of the lease and limits the repairing obligations for the duration of the lease term.
At Perry Hill Chartered Surveyors, our team of RICS surveyors has years of experience preparing Schedules of Condition and ensuring that your interests as client, are protected.
A Photographic Schedule of Condition provides a ‘point in time’ reference on the condition of a property. This can serve to limit the tenant’s liability for repairs or reinstatement at the end of a commercial lease term.
The Photographic Schedule of Condition is crucial to establish any building defects or repair issues for which the tenant may be held liable at the end of the lease. The Photographic Schedule of Condition could protect the tenant from onerous dilapidation claims at the end of the lease.
Schedules of Condition for Development Projects
As well as its function in commercial leasing transactions, a Schedule of Condition can also play a key role in recording the condition of a property before and after a redevelopment project.
In preparing a Schedule of Condition in advance, any damage arising from the work can be easily distinguished from pre-existing defects.
Schedule of Condition Surveys with Perry Hill Chartered Surveyors
We have supplied Photographic Schedules of Condition on a wide variety of properties across London and teh Home counties, photographic schedules can range from one of images of specific defects, to documenting condition of entire multiple discipline commercial and residential development.
Our Photographic Schedules are an essential developer or contractor tool for limiting the risk of subsequent claims for damage to buildings, during or after completion of works.
- What is a Schedule of Condition?
A Schedule of Condition is a document that provides a formal record of the condition of a property or premises at a certain point in time. A Schedule of Condition is often prepared for commercial tenants to set out landlord exceptions in terms of a tenant’s obligations to repair or maintain a building or space within a building.
- What does a Schedule of Condition contain?
A Chartered Surveyor will conduct a detailed inspection of the premises before preparing the Schedule of Condition, which will contain:
- Confirmation of the extent of the premises property.
- Confirmation of the lease clauses which require the tenant to repair, decorate, reinstate or yield up.
- A comprehensive list of ‘Wants of Repair’.
- A statement setting out likely repair works.
- Details of any tests carried out as part of the inspection.
- What are Dilapidations?
In this context, ‘dilapidations’ refers to any exit costs demanded of a tenant at the conclusion of their lease. These costs typically cover the amount required to set right any defects in the property that are perceived to have arisen during the leasehold period, to bring the property back to the condition in which it was prior to the lease.
A Schedule of Condition, conducted prior to lease commencement, prevents tenants from incurring any erroneous costs in this regard. The Schedule of Condition is cross-referenced with the Schedule of Dilapidations report issued at the end of the lease, to ensure any discrepancies are accounted for.
- What are the benefits of a Schedule of Condition survey?
A Schedule of Condition avoids potential legal disputes that may arise at the end of a lease term, upon the issue of a Schedule of Dilapidations report by the landlord. It establishes the state of the premises at the start of the term, protecting the tenant from erroneous demands to rectify before vacation.
A Schedule of Condition survey can avoid unexpected problems from the outset by highlighting any potential concerns about the state of the property before the tenancy commences.
A Schedule of Condition ascertains the accuracy of a property’s valuation, empowering the prospective tenant on whether or not to negotiate.
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