What is a Schedule of Condition?

A Schedule of Condition is a detailed, factual record of the condition of a property which is usually retained to use at a future time to establish the previous condition of the premises. The survey is typically included within a Lease to limit Tenant’s repairing obligations to the condition of the property at Lease commencement.

To fully record the condition of a building we undertake a Full Schedule of Condition. This would typically include a general description of a property, a detailed schedule which would document the form of construction and condition of each building element, supported by photographic and sometimes video records to give evidence. Specialist information can also be included in a schedule to fully record a buildings condition, for example a CCTV Survey of the underground drains, an electrical test report of the electrical system, an engineer’s report on the lifts etc.

When is a Schedule of Condition required?

For commercial property leases, a schedule of condition can be required when a new lease is entered into to confirm the condition of the property. This ensures that the condition recorded so that any existing defects are identified prior to a commitment to lease being made and can help with lease negotiation. It can also be used to establish responsibility for dilapidations and reinstatement, at the end of a lease.

A schedule of condition might also be prepared before construction work begins for adjacent properties or structures that will be retained, or if part of a building is being refurbished. This not only helps protect against potential claims from neighbours, who may only notice pre-existing defects in their property when the noise and vibration of construction begins but can also establish contractor liability for damage to the employer’s properties.

For both commercial and residential properties, a schedule of condition can be prepared where the Party Wall etc. Act 1996 applies. This is to provide evidence of the condition of the neighbouring building prior to works beginning. The party wall surveyors can then undertake a re-inspection of the building and determine whether any damage has occurred and what repairs should be carried out. 

What is the difference between a Schedule of Condition and a Condition Survey? 

There is often confusion between a Schedule of Condition and a Condition Survey. The main differences are that a Schedule of Condition is purely a record of the condition of the building to be appended to an Agreement whilst a Condition Survey (often also referred to a building survey, pre-acquisition or pre-lease commencement survey) is prepared to not only show the condition of the building but identify repair works required, usually with costs to assist in planning maintenance works which may be needed. VKB Building Consultancy can advise on the most appropriate type of survey that is required and complete the survey if necessary. Our surveys can be appropriately tailored to meet each individual clients specific requirements. 

Why instruct a surveyor?

It is often thought that by simply having some photographs on file these can be used to reduce a Tenant’s repairing liability under the term. If the photographs are not specifically referenced in the Lease and the Lease is held on standard full repairing terms, then it is unlikely they would limit a Tenant’s obligation and the Tenant could be liable for putting the property into repair, even if it was clearly in disrepair at the start of the Lease. This is why it is important to obtain specialist advice from a Chartered Building Surveyor. An incomplete, inadequate, or poorly drafted Schedule can often result in protracted negotiations, disputes and may result in negating the desired effect of undertaking a Schedule and fail to fulfil the intended purpose. Our knowledge will help reduce your liability and save you thousands of pounds at the end of the lease. 

Our Comprehensive Guide to Pre-Acquisition Surveys

Why do you need a Pre-Acquisition Survey?

As an owner, a pre-acquisition survey will help you maximise the value, condition or use of your property and minimise liabilities and ensure you are safeguarded from changing statutory requirements. For individuals and businesses wishing to purchase or lease, pre-acquisition surveys provide peace of mind and detail often not found in lender valuation surveys.

What is a Pre-Acquisition Survey?

A pre-acquisition survey (sometimes referred to as a building survey or structural survey) is a comprehensive assessment of a property’s condition and structure. It allows you to understand the current state and structural integrity of the property, whether it is suitable for the way you plan to use it and what future costs and other liabilities that you will be responsible for. 

What should the Pre-Acquisition Survey include?

Your survey report will include details of the building extent, construction and location, and detailed assessments of the internal and external condition and structure of the property, along with comprehensive photographs. It will also include information on any deleterious or harmful materials (e.g., asbestos) that were identified, advice on legal compliance issues, consideration of environmental hazards and advice on whether specialist investigations. such as drainage surveys or land contamination assessments, need to be carried out.

Benefits of completing a Pre-Acquisition Survey

There are many benefits of a pre-acquisition survey. It can help you make an informed decision on how much the property is worth. It can give an estimate on the life cycle costs of a building or property, as well as advice on refurbishments or improvements and repair obligations. This information can be essential at the beginning of the process in order to negotiate the most appropriate purchasing deal. A survey report also provides a level of protection if anything goes wrong.

Another key benefit of a pre-acquisition survey is that it helps to ensure due diligence and keep tenants safe in the property. By reporting on statutory issues, the owner and buyer can be aware of any issues with the property that need immediate attention such as asbestos or land contamination issues.

What happens when the survey is complete?

When the results of the survey are received, the next step is to create an action plan. You should consider any parts of the survey that were of any particular concern to you or if there was any presented information that may lead you to believe you will encounter any significant cost expenditures in the future.

VKB Building Consultancy carry out Pre-Acquisition Surveys for private and commercial premises of all types and can adapt the report to suit your requirements. As chartered surveyors, we adhere to the RICS and CIOB strict codes, such as impartiality technical ability and indemnity, ensuring that all surveys are carried out to a gold standard. This means that our reports can be reliably used in price negotiations and can be trusted by all parties. Click here to contact us for more information.