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.