Schedule of Condition: Detailed Schedule of Condition Reports

In many instances, this detailed report is essential for legal (lease or contractual) purposes and can be very beneficial in the event of any disagreements, especially as a means of preventing or minimising issues in potential dilapidations claims under the lease terms. It also plays a crucial role in identifying any issues with a property before committing to a lease agreement.

These records can be presented in a variety of forms, including photographic formats. This is referred to as a Photographic SoC. A Full SoC includes text, along with photos and sometimes video.

These reports can be used when a new lease is entered into, providing a detailed account of the premises’ condition before the lease starts, ensuring that any existing defects and necessary repairs are identified upfront. This proactive approach not only limits the tenant's liability for repairs but also clarifies both the tenant and landlord's responsibilities regarding maintenance. Our expert team is prepared to assist you with all your survey needs to ensure a smooth leasing process.

Schedules of Condition can also play a crucial role towards the end of a lease agreement. In such instances, it serves to clearly outline the condition of the property, helping to determine responsibility for any necessary repairs or reinstatement at the conclusion of the lease term.

When preparing a SoC, some important elements to include are:

• A clear statement about the purpose of the report
• A record of any pre-existing issues and their extent
• Technical drawings
• Clear details regarding the location and extent of the property and premises
• A general description of the premises construction
• Clear definitions of terms used to describe conditions in the property.
• A clear statement of the time of the inspection, as well as what the date was, and weather condition
• Photographs (these are some of the most important materials to be included). Videos as well as panoramas and drone footage can also be helpful
• A written record of the location, nature and condition of each item inspected (inside and out)
• Details regarding any specific tests taken on the property (for example, damp testing)

Photos must be clear in their depiction of the property. If a landlord, for example, is claiming that there are issues with the property, but photos taken beforehand are unclear in showing the actual state of the property then their value will be limited.

Photos alone are of limited value and use. We have seen numerous cases where property owners have captured images of their building but have failed to include any accompanying description. This oversight can result in only a partial understanding of the issues present, leaving other potential problems hidden from view. It is crucial to ensure that both visual documentation and written descriptions are provided to accurately assess the state of your property.

The proper and combined use of both Photos and Text can give much greater weight to the report.

Our sister chartered surveying consultancy Raeburn Consulting specialises in negotiating lease terms for commercial and leisure properties throughout the UK and ROI. This allows us to effectively manage your exposure to excessive repairing liabilities not only by conducting thorough surveys, including high-quality SoC reports, but also by utilising other tools to exclude certain elements altogether, ensuring that you are protected from unexpected costs.

It's important to note that in England & Wales, the standard repairs clause wording in a lease requiring tenants ‘to keep’ the property in good and substantial repair is interpreted at law to mean that if you take on a property in poor condition, you are then responsible for returning it at the end of the lease in better condition. This means that as a tenant, you may be required to invest time and resources into maintaining and improving the property throughout your occupancy. This legal interpretation can have significant implications for tenants. Therefore, before entering into any lease agreement, it is strongly advised to obtain a surveyor’s report.

While a well-structured SoC can help mitigate this unjust exposure to some extent, it is not a cure-all solution. Please read the article which, in short, explains that the apparent protection afforded by qualifying the tenant repairs lease clause to ‘not having to hand back in any better (or no worse) condition than evidenced by the attached SoC’ often fails in practice for elements of a property which inexorably deteriorate in any event. For instance, what the report shows to be a one-third rotted window sill at lease commencement, ends up being 50% rotted by the end of the lease. As it is impossible to fix just the rot which occurred during your lease so as to meet your contractual obligation, the position at law is that you then have to replace the whole sill (or window) in order to comply. Imagine a similar scenario with a more significant item such as the entire warehouse roof (inexorably advancing cut-edge corrosion)!

Our expert team not only identifies building defects and disrepair before you commit to a lease, but we also provide detailed advice on the most effective solutions to minimise your future obligations. This includes, among other things, preparing Schedules of Condition.