What it is
A Schedule of Condition is a written and usually photographic record of the condition of a property at a particular date. In a commercial lease it is typically prepared before the lease starts and then attached to, or referred to in, the lease so that everyone can see the starting point.
The RICS Code for leasing business premises explains why this matters. Where a tenant's repairing obligation is to be limited to the initial condition of the premises, a schedule of condition will normally be required, and the parties should agree who pays for it.
When you need one
- You are about to take a lease and do not want to be responsible for repairing existing defects.
- You are a landlord and want a clear, agreed record of the premises before letting.
- You are taking only part of a building, or a short lease of an older property.
- You want protection against a dilapidations claim at the end of the term.
- Works are about to start next door or in the same building and you want the current state recorded.
What the surveyor does
The surveyor inspects every accessible part of the premises and records its condition element by element, usually supported by dated photographs. Defects are described precisely, with location, size and nature, so that the document can be relied on years later if there is a disagreement.
The surveyor will also tell you what a schedule cannot do. It records visible condition; it does not show hidden or latent defects, and it does not on its own limit a repairing covenant. For that, the lease itself must refer to the schedule in the relevant clauses, which is a point for your solicitor. The schedule also does not make a landlord responsible for repairs that the tenant is excused from.
What you receive
- A clearly structured written record of the premises, area by area.
- Dated photographs cross-referenced to the written descriptions.
- Notes on any areas that could not be accessed or inspected.
- A document that can be attached to the lease and agreed between the parties.
Typical process
- Tell us about the premises and the lease timetable.
- The surveyor inspects and photographs the property.
- The draft schedule is issued so it can be checked and agreed by both sides before the lease is signed.
- The agreed schedule is attached to the lease and kept with your records.
Frequently asked questions
Should I prepare one before signing the lease?
Yes. RICS advises that any required schedule should be prepared with enough time before the lease is granted for the parties to check and agree it as accurate.
Can I just take photographs myself?
The RICS Code accepts that some tenants do this, provided the photographs are dated, agreed by the landlord and kept with the lease. A professional schedule is normally more detailed and carries more weight.
Does a schedule remove all repairing obligations?
No. It limits what you are asked to put right where the lease is drafted to refer to it. Latent defects, plant and equipment, and other lease clauses should be discussed with your solicitor.
Who pays for it?
That is a matter for agreement between landlord and tenant. The RICS Code says the parties should agree who is responsible for the cost.
Sources and further reading
- RICS: Code for leasing business premises (England and Wales), 1st edition
- RICS: Dilapidations in England and Wales (consumer guide)