Schedule of Conditions

At a recent seminar hosted by a law firm the viability of schedule of conditions were raised. The intention is to limit the liability of the incoming tenant at the end of the term. However, a number of surveyors acting on behalf of the landlord do not consider them when preparing the terminal schedule of dilapidations. The reason being that the schedules are usually photographic only and they have been photocopied numerous times making it difficult to identify anything on the photos. Usually the original schedule of condition cannot be found rendering the copy ineffective.

To ensure the tenant is protected by the schedule, a full schedule should be produced including text, photos and a plan with the location of the photos marked on. A colour copy should be held by the client and their solicitors and only colour copies made. The benefits at the end of the term will outweigh the initial cost and will ensure the tenant does not have a claim against them for items they have no obligation to repair. If any significant items are identified on the schedule of condition it would be beneficial for the future tenant to have a building survey undertaken to ensure that any items that may be progressive can be removed from their obligation.

In short, pay a small cost now and have a potential large cost at the end of the term or, pay a slightly larger initial cost and ensure the costs are limited at the end of the term.

John Atkinson - Associate