A Schedule of Condition is useful in many situations but is particularly important to commercial Tenants with repairing liabilities.
When acquiring property either under a new lease or by taking an assignment it is essential that the lease end liabilities are closely considered and a detailed Schedule of Condition will protect an ingoing Tenant by limiting the extent of work that can be claimed on expiry. To ensure protection, the Schedule of Condition should be agreed, signed and referred to in the lease. We often also provide a Pre-Lease Building Assessment report to advise the ingoing Tenant of their likely maintenance liabilities over the term of the lease and if relevant, identify ‘high risk’ items which should ideally be negotiated out of the lease.
When are Schedules of Condition Used?
Schedules of Condition are also often used to record the condition of a property or structure prior to significant construction or engineering work taking place nearby – such as works in connection with the Party Wall etc. Act 1996.
AG provide Schedules of Condition in hard copy and on CD or memory card for ease of reference in the future – This has proved most useful to prevent future disputes arising. A poorly prepared Schedule of Condition can in fact lead to more disputes than it solves.