GavaghanJones Surveyors Ltd

Schedual of Condition

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An agreed Schedule of Condition at the commencement of a commercial tenancy and attached to the lease is the most effective way of limiting future dilapidations liability.

Unfortunately, our experience suggests that most prospective tenants do not receive best advice before signing commercial leases and entering into onerous full repairing obligations. Most do so without understanding the likely dilapidations consequences at the end of the tenancy.

Lease wording varies significantly and exact wording is of critical importance. A lease is a binding contract and fully understanding the terms of the lease is the first step in understanding likely future liabilities for repair.

Most leases break the tenant's obligations into repair, redecoration, alterations and removal of tenant's goods. If these clauses are not limited, they can require the tenant to leave the building in better condition than at the beginning of the lease.

 

The function of a Schedule of Condition is to accurately record the condition of the demise with reference to repairing obligations set out in the lease.

Without a Schedule of Condition, it is difficult for a tenant to argue that items in a final Schedule of Dilapidations are invalid due to the disrepair being present at the beginning of the term. This means the tenant may end up unfairly penalised paying for or repairing items for which they should not be responsible.