What a Schedule of Condition actually is
A Schedule of Condition records the physical condition of a commercial property at a specific point in time using written descriptions and indexed high-resolution photographs. It captures finishes, services, defects and existing wear across every accessible area.
When the lease refers to the schedule, the tenant's repair and yielding-up obligations are limited to the condition recorded in it. This protects the tenant from being held liable for pre-existing defects.
When a tenant should commission one
The right time is between heads of terms and lease completion. That window allows the document to be agreed with the landlord and properly referenced into the lease.
- Before signing a new commercial lease.
- On lease assignment or sub-letting.
- Ahead of fit-out works that will alter the property.
- When taking on full repairing and insuring (FRI) obligations.
What is included in the document
A robust Schedule of Condition is structured for legal use. It is not a building survey: the focus is on factual recording, not advisory commentary.
- Indexed photographs of every accessible area.
- Written descriptions of finishes and condition.
- Identification of existing defects, wear and damage.
- External elevations, roofs and demised externals where applicable.
- Reference-ready formatting for attachment to the lease.
How it reduces dilapidations risk
Without an agreed schedule, a landlord can bring a Terminal Schedule of Dilapidations at lease end that includes pre-existing defects. The tenant then has to disprove responsibility, which is difficult and expensive.
With an agreed schedule, the baseline is fixed. Disputes become narrower, evidence is clearer, and settlements typically reduce.