Schedule of Condition

Leases, Dilapidations, Party Wall, Projects

A written report, typically prepared by a building surveyor, comprising photographs and written descriptions documenting the layout and state of repair of a property at a specific point in time.

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The Schedule

A Schedule of Condition is used to definitively record the presentation of a given property at a specific point in time.

They are most typically used within commercial lease contexts, where requirements under the lease make specific reference to the condition of the property at the start of the lease (as recorded in the Schedule of Condition).

This may be, for instance, the tenant’s requirement to not allow the property to worsen in condition compared to the Schedule of Condition OR it may be that their repairing/maintenance obligations are limited/capped so they do not have to do any works to the property which would improve it compared to the record in the Schedule of Condition.

Alternatively, these documents can also be used to record a property’s condition prior to the commencement of Party Wall works.

Schedules of Condition are also used in construction contracts, where the condition of a property is recorded before works are carried out, to best avoid any dispute over damage caused during the works.

The Process

The surveyor will inspect each room/area of the property in question, including externals where relevant. Taking a methodical approach, they will document each element of each room/area to record its form/layout, as well as its general condition and any specific defects.

This might include specific areas of soiling to carpet flooring, some cracks/damage to walls, or defective light fittings, and this should be cross-referenced with photographic evidence and – ideally – building plans.

The Outcome

The most direct intention of a Schedule of Condition is to avoid dispute.

In any of the given scenarios described, the fact that it is a pre-agreed record of the property in question should reduce the chance of difference in opinions and consequent dispute.