Schedule of Condition

What It Includes:

• Descriptions of the building’s physical condition (e.g. walls, ceilings, floors, fixtures).
• Photographs of each area or item described.
• It usually focuses on visible defects (e.g. cracks, damp, wear and tear), but may include commentary on fittings, finishes, or services.

When Is a Schedule of Condition Required?

1. At the Start of a Commercial Lease (most common use):
   • Especially with Full Repairing and Insuring (FRI) leases.
   • It limits the tenant’s repairing obligations to the condition of the property at the start of the lease, protecting them from being liable for pre-existing damage or wear and tear.
2. Before Construction or Renovation Works:
   • To record the condition of adjoining buildings or areas before major works (e.g. demolition, piling, basement excavation).
   • Helps protect against future claims for damage supposedly caused by the works.
3. Party Wall Awards:
   • Under the Party Wall etc. Act 1996, it can be used to document the condition of neighbouring properties before starting notifiable works.
4. Dilapidations Disputes:
   • While not always prepared with this in mind, a schedule of condition can be used as evidence in resolving disputes at the end of a lease.

Why It’s Important:

• Reduces disputes over damage and liability.
• Protects both landlords and tenants.
• Supports insurance claims or legal proceedings if damage occurs later.