A Schedule of Condition is a formally drafted document that records the condition of a property or built asset at a specific point in time.
Typically a Schedule of Condition Survey is procured at the start of a lease.
The main purpose of the Schedule is to provide a detailed inventory of the property’s condition, including any defects, repairs or other issues that may be present. Depending on the skill and experience of the Surveyor, the Schedule will also include any potential Lease-related issues / occupational issues that may become problematic at the end of a lease period.
A Schedule of Condition is usually prepared by a qualified surveyor and is drafted to evidence a physical inspection of the property. The surveyor will make a detailed examination of the Demised Premises, including the structure, roof, walls, floors, windows, and doors, as well as any services, such as heating, plumbing, and electrical systems.
The surveyor will also take photographs and make notes of any defects or issues that are identified.
A Schedule of Condition is a particularly important document for both landlords and tenants as it establishes a clear record of the condition of the property at the start of the lease. This can be used as evidence in the event of a dilapidations claim, which is a legal process that allows landlords to claim for repairs to the property at the end of the lease.
Conversely, a good schedule can be used to protect a Tenant against Dilapidations claims.
For landlords, a Schedule of Condition provides a detailed record of the condition of the property at the start of the lease, which can be used to compare with the condition of the property at the end of the lease. When used in tandem with a well-written Lease, the Schedule can be used to compare any changes in condition between the date at which the Lease commenced and the date and which the Tenant vacates.
Typically, a Landlord would utilise a Schedule of Condition to protect their asset when it is in good order at the start of the Lease.
For Tenants, a Schedule of Condition can help to evidence the condition of a Demised Asset to protect against dilapidations claims that may be unjustified. In some cases, a property will change hands during the Tenancy (sold as a standing investment, for example) and it can often become difficult to defend a Dilapidations claim without a Schedule of Condition.
The schedule of condition can be used as documented evidence to show that any repairs required at the end of the lease were either present at lease commencement or are the result of normal wear and tear, rather than damage or neglect by the tenant.
The Schedule needs to be engrossed within the Lease document for it to be of any use. Without being referenced in the Lease, the documented condition of the property can often be very difficult to prove.
It is also important to instruct a Solicitor to revise Lease clauses to reflect the presence of the Schedule. For example, if the Schedule evidences the Demised Premises as being in poor decorative order, then having an express decoration clause within the Lease, to the effect of “The Tenant will decorate within the last 6 months of the term” can often dilute the benefit of the Schedule in the first place.
It’s worth noting that the schedule of condition should not be confused with a Building Survey or a Homebuyer Report. These are different types of surveys that provide a more comprehensive assessment of the condition of a property and are typically used when buying or selling a property. At Trinity Surveyors, we offer a wide range of Surveys though it is important to establish client requirements at an early stage.
Additionally, the Schedule of Condition should always feature a fully detailed and comprehensive photographic schedule.
In summary, a Schedule of Condition is a valuable tool for both Landlords and Tenants, as it provides a clear (and agreed) record of the condition of the property at the start of the lease, which can be used to compare with the condition of the property at the end of the lease.
This helps to ensure that Tenants are held responsible for any damage or neglect of the property during the term of the lease, and that landlords are not held responsible for repairs that are the result of normal wear and tear. Conversely, it also ensures that a Tenant is protected against paying for repairs, decoration and/or reinstatement that they are not liable for.
Speak to one of our experts today at Trinity Surveyors to see how we can advise and guide you toward the right survey for your needs.
