Don’t fall into the repairing liability trap
A Schedule of Condition is carried out in order to determine the condition of a property asset so that any existing defects and their repair costs are identified prior to any commencement of work.
Depending upon the client’s requirements, the Schedule can record the asset’s principal features only, or may be prepared to a very high level of technical detail.
Schedules of conditions limit repair costs and liability at the end of the lease
If you acquire a lease of business premises in the UK, you may find that you have accepted a repairing liability which will mean that you have to leave the property in better condition than it was at the start of the lease.
To avoid this well advised business tenants are now documenting the condition of premises before they acquire a lease and ensuring that the lease limits their liability by reference to the Schedule of Condition. The reasoning behind this is that most business premises in the UK are let on Full Repairing and Insuring Leases. This means that the tenant is liable for the repairs required to keep and put the premises in good condition, this includes those repairs, such as the replacement of a roof covering.
To avoid the liability of putting the premises into a better condition than they were at the start of the lease it is necessary to have a Professionally prepared Schedule detailing the Condition of all the elements of the accommodation and for this Schedule to be attached and referred to in the lease documentation.
Your starting point for what you need to know about schedules of condition, repair, claims, dilapidations, leases.
Carpenter frequently deal with Dilapidation Claims which can range into hundreds of thousands of pounds. Even on the smallest shop claims can run into tens of thousands of pounds. The cost of preparing a Schedule at the commencement of the lease is a fraction of the costs of repairs which the tenant would otherwise be liable for a schedule of condition is vital in many situations.