Schedule of Condition

A schedule of condition is not a specific requirement within the Party Wall etc Act 1996, but one which Masefields will always recommend.

If surveyors are appointed to resolve a dispute, it makes sense to have a report which describes the condition and photographic evidence of condition, prior to works commencing, so that the appointed surveyors can determine if the damage reported was pre-existing or new and because of the relevant works.

If there is no pre-commencement record, the determination of any claim for damages would rely on the appointed surveyor’s judgment as to whether the damage is more likely to have been caused by the development works or not.  A Schedule would reduce the opportunity for contentious disputes later.

A schedule of condition provides both parties with protection, the building owner against unrealistic claims for damages and the adjoining owner with clarity that damage has been caused and will be rectified under the Award.

Without a Schedule of Condition, the tenant is often unable to defend any claims by the landlord where the lease requires them to ‘put’ or ‘keep’ the premises in ‘good and substantial repair.’ A schedule of condition, where annexed correctly to a lease, can limit any repairing obligations to ‘no worse or better state of condition’ than at the commencement of the lease.

With leasehold properties, where heads of terms or a lease are already in place, the Schedule of Condition can be tailored to suit the specific repairing obligations within the lease.

At the end of the lease term, the Condition Schedule will assist in dealing with dilapidations claims, allowing comparison of the current condition to that previously recorded. This ensures that the building can be returned to its original condition, protecting the landlord’s investment value, without making the tenants place the property in a better condition than required.

We would recommend that a tenant obtains a Schedule of Condition, especially where the property is old, in poor condition or the lease terms are considered onerous and with a solicitor’s guidance is referenced in the lease to limit their future liability.