A schedule of condition is an annotated record of the condition of a property when a lease is granted. This document acts as a comparison for assessing the condition of the property at the end of the lease. It typically consists of written descriptions and photographic evidence, which illustrate the state of repair and condition of the premises. If you are required to repair or pay for damages, your landlord will issue a Schedule of Dilapidation.
Photos are the best evidence of the condition of the property when the lease begins. A photographic schedule of condition is evidence of the property condition at the start of the lease. It shows the following:
Although the schedule is generally necessary for the tenant’s protection, both the landlord and the tenant benefit from preparing it. Having an agreed record of the condition of the property at the start of a lease can prevent arguments when the lease comes to an end, as the schedule can be referred to as a reference. In addition, it makes it clear what the tenant’s maintenance obligations are, so they can be sure they are looking after the property properly.
Before or after the lease term, the surveyor will explore the entire building to ensure the tenant meets their obligations. If tenants choose to do without a Schedule of Condition, they run the risk of dealing with chargeable repairs that are the landlord’s obligation. Likewise, it is essential for landlords to produce a comprehensive Schedule of Condition in order that the tenants comply with the terms of the lease. For assistance in the preparation of this vital yet frequently neglected document speak to one of the RICS Chartered Surveyors.
Our panel of RICS Chartered Surveyors can review the terms of your landlord’s Schedule of Condition if you’re a tenant, so you can sign the lease knowing what you’re getting into and avoid being held responsible for damage that’s not your fault.
Surveyors are able to defend landlords and tenants in London from financial loss through the preparation and verification of precise Schedules of Condition. They can also help both parties to agree fair terms and appreciate non-compliance repercussions.
Having a schedule included in a lease is of utmost importance for tenants. The inclusion of a schedule of condition may restrict a tenant’s repairing obligations to that of the condition provided at the outset of the lease. In the absence of a schedule, tenants could be unjustly liable for disrepair or dilapidations that were present before their tenancy began. In particular, where the property is in a poor condition at the commencement of the lease, a comprehensive schedule may safeguard the tenant’s interests.
The term ‘schedule of condition’ in relation to party wall is a record of the condition of the Adjoining Owners property at the time of the appointment of the Party Wall Surveyors. The surveyor will look at the walls of the adjoining owners buildings, the floors and the ceilings. Typically, the visible external parts of the building envelope are included as well. If the Adjoining Owners buildings have gardens, these are also included.
The extent of the area scheduled is included in the ‘Award’, which is the document produced by the Party Wall Surveyors covering the work. Only parts in close proximity to the works are included in the Schedule of Condition. So, basement works are being undertaken by the Building Owner, it would not make sense to schedule the roof of the Adjoining Owner.
The Schedule of Condition can be carried out at the start of a Lease or before neighbouring construction begins. It protects whoever is a stakeholder of the property where the schedule of condition is being undertaken. It creates a benchmark, should later construction work prove damaging. It also protects the party initiating the construction work/ building work as it can reduce the risk of malicious claims of damage.
When a schedule of condition is to be carried out, the adjoining owner is given notice and asked if access can be afforded to their property. If the adjoining owner does not permit access to her or his property for a schedule of situation to be carried out, there are actions you can take.
Where an owner does not allow access then the owner concerned is written to again, to clarify and generally confirm and again to confirm that they would not be in a position to prove any claims of damage if the damage belonged in a place that had not been looked at in a schedule of condition. Sometimes this also acts as an incentive to the owner to allow access into their property.
A schedule of situation can also be carried out from the public highway and/or the Building Owner’s property to record the external parts of the Adjoining Owner’s property, but it will not cover the internals.
People often wonder if the Statutory Undertakers – e.g. gas, water and electricity companies – are required to compile Schedules of Condition, when they are digging for trenches, cables and other infrastructure below ground. Ordinarily, the statutory undertakers do not need to issue notice under the Party Wall Act., 1996 to adjacent property owners, for excavations in proximity to adjacent structures.
However, if certain circumstances occur, then there is nothing to stop either the Statutory Undertaker concerned (e.g. utility) or a nearby property owner approaching the Statutory Undertaker concerned and agreeing with them if a schedule of condition would be a prudent exercise in order to protect both owners interests on
In the majority of cases the service undertakers are not the owner of the land that they are excavating, but are granted a right to lay infrastructure, on or under it. This does not therefore make them an ‘Owner’ as defined by the Party Wall Act and, therefore excludes the requirement for them to serve Notices under the Party Wall Act on Adjoining Owners.
The main takeaways are as follows in respect of the importance of having a schedule of condition:
