R S Baxter & Associates Ltd

Schedules of Condition / Dilapidations

In commercial property cases, a schedule of condition may be required when a leaseholder is entering into a lease whereby their repairing obligations are limited to that of keeping the premises in no better or no worse condition than as at the commencement of the lease. In such circumstances, evidence of that condition will be required and it will usually take the form of a schedule of condition. This will provide a description of the condition of a property accompanied by photographic evidence.

In the case of both residential and commercial properties, where the Party Wall etc Act 1996 applies, a schedule of condition is usually prepared to provide evidence of the state of repair of any adjoining building prior to building works being carried out. The schedule of condition can be referred to at any time, either during the course of the works or after completion to assess whether resultant damage has occurred to the adjoining building.

A schedule of dilapidations is a document that identifies relevant lease/tenancy obligations and alleged breaches of those obligations. In certain circumstances remedial works that have been completed or are proposed in order to rectify each alleged breach and potentially the estimated or actual cost incurred in rectifying those breaches. Landlords schedules of dilapidations are commonly referred to as interim schedules of dilapidations, which are prepared in contemplation of remedy of any alleged breaches during the contractual term of the lease. A terminal schedule of dilapidations is prepared at or shortly after the end of the lease term. A Scott Schedule is a schedule of dilapidations with additional columns to enable the parties to set out their respective views.