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Schedule of Condition and Schedule of Defects Reports in London

MSR Surveying prepares a schedule of condition in London, Essex and the Home Counties. A schedule of condition records the exact state of a property at a fixed point in time, before a lease is signed or before building work starts next door for landlords, tenants and building owners. Schedules of Condition and Schedules of Defects are used in various scenarios, presented in an easy-to-understand format with accompanying photographs and drawings when applicable. Schedules of Condition are typically created before entering into a lease agreement, as part of an Award document under the Party Wall etc. Act 1996, and prior to any building work on leased properties. Schedules of Defects, on the other hand, are more targeted reports used before significant building work that may impact neighbouring properties.

Prior to Lease Agreement

Schedules of Condition document the state of premises intended for lease. When included in the lease agreement, they protect the tenant by limiting the landlord’s ability to claim for repairs under a Schedule of Dilapidations at the lease’s end.

Under the Party Wall etc. Act 1996Ā 

A Schedule of Condition must be created for adjoining properties before proposed building work under the Party Wall etc. Act 1996. This schedule is attached to the Party Wall Award and is checked post-works to identify any damage.

Prior to Works on Leased Premises

Landlords usually require a Schedule of Condition before any alterations to leased premises to protect adjoining properties that could be affected. This schedule is also checked upon completion of the work to assess any damage and agree on remedial actions.

Before Major Building Work

Schedules of Defects focus on specific issues that have arisen and serve as a benchmark to evaluate potential future damage related to specific construction activities and their impacts.

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Schedule of condition at a glance

What it isA dated record of the condition of a property at a fixed point in time, written up and supported by photographs
Most often used forCommercial leases, works under the Party Wall etc. Act 1996, and alterations to leased premises
Who instructs oneTenants, landlords, building owners and adjoining owners
What you receiveA written schedule, referenced photographs, drawings where they help, and a note of anything that could not be inspected
Related reportA schedule of defects, which records specific existing defects before major building work nearby
FeeQuoted per property and instruction — ask for a quote with the address and the lease or works details
Areas coveredLondon, Essex and the Home Counties
Carried out byRICS-qualified surveyors at MSR Surveying Ltd, an RICS-regulated firm

What a schedule of condition actually protects you from

If you are taking a commercial lease

Most commercial leases are full repairing and insuring, which obliges you to hand the premises back in repair at the end of the term. Without a record of how the premises were when you took them on, a landlord’s schedule of dilapidations can include defects that were already there on day one, and you are in the weak position of arguing from memory. A schedule of condition annexed to the lease fixes the starting point in writing, and caps the repairing obligation at the recorded state. It is agreed before the lease is signed, which is why it has to be commissioned early.

If building work is happening next door

Under the Party Wall etc. Act 1996 the condition of the adjoining property is recorded before the notifiable works begin, and the schedule is attached to the party wall award. When the work is finished the property is inspected again against that record. It is the document that settles the question both sides end up asking — was that crack there before? Without it, the argument is unresolvable and usually expensive.

What is in the document

  • The address, the date of inspection and who the schedule is prepared for
  • A room-by-room written description of the internal condition
  • The external elements — walls, roof coverings where visible, rainwater goods, windows, boundary structures
  • Photographs cross-referenced to the written entries, so a photograph can always be tied to a specific item
  • Drawings or marked-up plans where they make a location clearer
  • A statement of limitations — what was not accessible, and why

Schedule of condition, schedule of defects, schedule of dilapidations

The three are routinely confused, and they do different jobs.

Schedule of conditionRecords the whole property as it is now, before a lease or before works. Protective and preventative.
Schedule of defectsRecords specific existing defects, as a benchmark before major building work that could make them worse.
Schedule of dilapidationsServed by a landlord at or near the end of a lease, setting out the breaches of the repairing covenant and what it will cost to put them right.

When to have one prepared

Before the lease is signed, or before notices are served and work starts. The value of the document is that it records a state nobody has altered yet, so once heads of terms are agreed or a contractor is on site its usefulness falls away quickly. If you are already in that position, tell us and we will say honestly whether a schedule is still worth commissioning.

Schedule of condition questions

What is a schedule of condition?

A schedule of condition is a dated record of the state of a property at a fixed point in time, written up and supported by cross-referenced photographs. It is prepared before a lease is signed, or before notifiable building work begins, so that the condition at that moment can be proved later rather than argued over.

Do I need a schedule of condition for a commercial lease?

If the lease is full repairing and insuring, it is the main protection a tenant has. Without one, a landlord’s schedule of dilapidations at the end of the term can include defects that existed before you took occupation. Annexed to the lease, a schedule of condition caps the repairing obligation at the recorded state.

When should a schedule of condition be prepared?

Before the lease is completed, or before party wall notices take effect and work starts on site. The document records a state that has not yet been altered, so its value falls away once a contractor is working or a tenant has begun fitting out.

Is a schedule of condition the same as a schedule of dilapidations?

No, and they sit at opposite ends of a lease. A schedule of condition records the premises as they are at the start. A schedule of dilapidations is served by the landlord at or near the end, listing breaches of the repairing covenant and the cost of remedying them.

Is a schedule of condition required under the Party Wall etc. Act 1996?

It is not a statutory requirement in itself, but in practice it is prepared for the adjoining property before notifiable works begin and attached to the party wall award. The property is then re-inspected afterwards, and the schedule is the evidence used to decide whether damage is new.

How much does a schedule of condition cost?

It is quoted per property and per instruction, because the fee follows the size of the premises, how much of it is being recorded and the level of detail the lease or the award calls for. Send the address and the lease or works details and we will give you a fixed figure.

Who pays for the schedule of condition in a party wall matter?

In most cases the building owner carrying out the works bears the surveying costs, including the record of the adjoining property’s condition. The exact allocation is set out in the award. MSR Surveying acts for building owners and adjoining owners alike — see our party wall surveyors page.

If you are not sure which report you need, say so and we will tell you. Call 020 3318 9426, email info@msrsurveying.co.uk or ask for a quote. There are more answers on our RICS survey questions page.