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A Schedule of Condition Report is an annotated document that details the condition of a property when a lease is granted. This document is the basis for benchmarking the property at the end of the lease term. It is standard practice to accompany a Schedule of Condition with photographs that capture the details of every room—particularly any defects. The photographs do not need to be part of the public record; they serve to verify the description of defects. If you are required to repair or pay for damages, your landlord will issue a Schedule of Dilapidations.
A Schedule of Condition Report contains the accurate evidence regarding the property condition at lease commencement. This report evidences the property condition at the beginning of the lease with photography. When any disputes arise between the landlord and the tenant regarding the property state during the lease period, the Schedule of Condition Report holds significant validity in presenting evidence to any judge or jury determining the matter. To better understand what the Schedule of Condition Report is, let’s look at what it consists of:
Although tenants mostly benefit from having a schedule, landlords do too. A record of the property’s condition at the start of a lease can cut down on disputes at the end. That’s especially true when the property is worn out after tenancy.
At some point before or after the lease period has expired, the whole building will be inspected by the surveyor to ascertain that the tenant has met all his/her obligations. If the tenant chooses not to have a Schedule of Condition, then he/she is in essence allowing for the possibility of being charged for repairs that the landlord thinks are necessary when in fact they might be the landlord’s responsibility.
It is essential for the landlord to have a definitive Schedule Condition as well to see how the condition has changed and whether the tenant has caused damage.
For help in preparing this important document, you can consult one of the RICS Chartered Surveyors on our panel.
If you’re a tenant, our panel of RICS Chartered Surveyors can go over your landlord’s Schedule of Condition with you. That way, you can be clear on what you’re signing up for in the lease and avoid any responsibility for damage that isn’t your fault.
The surveyors prepare and check Schedules of Condition to defend both Notting Hill landlords and tenants from financial loss. They also help both parties work out fair terms and understand what could happen if the Schedule of Condition isn’t followed.
It’s critically important for tenants to have a condition schedule included in their lease. This document can limit the repairs a tenant is responsible for to only the repairs necessary to maintain the property in the condition it was in when the lease began. Without a schedule of condition, a tenant could be held liable for maintenance problems that existed before they moved in. This is especially true if the property is in rough shape when the lease begins. Having this document, then, helps protect a tenant’s rights.
In regard to party wall matters, the term “schedule of condition” pertains to the documentation of the state of the Adjoining Owner’s property when the party wall surveyors were appointed and before works commenced.
The “Award,” which is the document produced by the Party Wall Surveyors, covers the Building Owner’s work. In preparing this document, the Surveyors first consider the condition of the Adjoining Owner’s property.
The surveyors will check the walls of the Adjoining Owner’s property, the floors, and the ceilings if in close proximity to the work. Moreover, they will examine the visible external parts of the building envelope and inspect parts of the garden which may be affected by the building owner’s project.
Again, only those areas in near to the work are included in what is termed the Schedule of Condition. If the Building Owner is excavating a basement, it obviously would not make sense for the Surveyors to include a description of the condition of the Adjoining Owner’s roof.
A Schedule of Condition can be executed at the beginning of a lease or just prior to construction work starting next door. It creates a protective cover for anyone with a stake in the property where works are taking place nearby and establishes a baseline, should what follows turn out to be injurious. This document can help enforce a liability for damages by the party that is going to do the construction work, as it tends to reduce the probability of unfounded claims.
When a Schedule of Condition is to be performed, the neighbouring owner receives notice and is asked if access can be granted to her or his property. If the neighbouring owner does not permit access to their property for the performance of a condition schedule, there are steps that can be taken to remedy the situation.
If an owner does not permit access, then that owner is written to once more to clarify and generally confirm that they are not in a position to prove any damage claims if the damage occurred in a location that wasn’t inspected as part of a schedule of condition. This also sometimes acts as a little push to get the owner to change their mind and allow access to their property.
Your surveyor can also prepare a situation report from the public road and/or the property of the building owner to mark the external parts of the adjoining owner’s property. Your surveyor can not prepare a situation report that covers the internal parts of the adjoining owner’s property if they can not get inside.
The Full Building Survey report includes the following:
When it comes to the detail that the surveyor will go into concerning defects, repairs, and maintenance, the Homebuyer Survey is fairly standard. Full Building Surveys, however, are more refined and go into more detail about possible and likely defects. Repairs and maintenance are covered in more detail. The Survey cost depends on the age, size, and value of the property.
The analysis they undertake is a visual inspection. This means that, for the most part, the building components that can be seen will be looked at and assessed in accordance with the surveyor’s remit. The Home Survey Report will show you the visible defects and then go on to discuss the kinds of partially hidden or totally hidden defects that the surveyor thinks you should be aware of. It will also try to clarify what kinds of repair work need to be done and the nature of the repairs. The survey is effectively a way to consider “defects” and their potential impact on the building.
A Building Survey Report contains the most important information for understanding the condition of a property. The surveyors that undertake the work follow a set procedure. The first part of the report contains a general overview of the property and its surroundings. The second part details the major and minor problems with the property’s components, inside and out. These problems range from serious structural defects to issues with doors or windows that don’t close properly, and everything in between. The report is written in clear English, complemented by diagrams and photographs. If any of the problems found are what a surveyor might consider important, that’s what the report indicates—using clear and unambiguous language.
Surveyors usually use a tick box to indicate methods of repair when drafting a building survey report. They are also required to comment on the timescale of any repairs. A condition rating is typically included: what needs to be addressed immediately, what is in the process of deteriorating but is in reasonable condition, and what has not deteriorated at all.
A building surveyor is responsible for a variety of checks and tests during a building inspection. These could be checks or tests for damp and woodworm, or they could be visual inspections of the building’s structure. In building surveying, there are visual inspections of roofs – checking for tiles and slates (if applicable) and also checking for leadwork (if applicable) and looking at the junctions between roof and wall. If the wall structure has brick in it, the surveyor will visually check for any “spalling” (brick breaking apart visibly) and any bulging (brick failing to hold its place visibly), for example.
If defects need fixing immediately, then the options recommended for this survey specify what to repair and give some idea of how long the problem has existed. For the most part, this survey describes recommended repair approaches that are standard in the industry and that do not require excessive expenditure. Future maintenance is also discussed, including what to expect when the problem being surveyed is not repaired and what to expect with repairs that are made but with questionable methodology.
Your surveyor will explain some of the legal aspects of purchasing the building, covering—in as much or as little detail as you desire, and their implications, but this is subject to your solicitor verifying.
You might consider having a separate market valuation done to determine whether the property’s asking price is warranted. You’ll also need a reinstatement cost valuation for insurance reasons.
Many people wonder whether gas, water, and electricity companies, for example, are required to prepare Schedules of Condition when they are installing underground infrastructure. The answer is that it is highly unlikely these companies would ever comply with such a requirement. In fact, companies that are statutory undertakers under the relevant legislation are not required to give notice to adjacent property owners when they are required to excavate in the vicinity.
If certain events unfold, then nothing prevents the relevant utility company or property owners close to a worksite from coming to an agreement. What could such an agreement look like? As they might be servicing an area where underground work (e.g., laying new cables) will be necessary over the next 3-5 years, a Schedule of Condition should be undertaken.
So, if work plans intersect with someone else’s property to the extent that that property owner would be justified in claiming that the work would damage their property, then the relevant parties could record the property condition and sign an agreement that lays out the terms. It does not make them an “Owner” as the Party Wall Act defines it and, therefore, it rules out the need for them to serve Notices under the Party Wall Act on Adjoining Owners.
The essential points about the importance of a schedule of condition are as follows
Looking for a Chartered Surveyor? If you are buying a property, contact us for a building survey. Our panel of CIOB, RPSA and RICS surveyors will help you with the Level 2 or Level 3 property survey you need in Notting Hill. We can also assist you in Red Book Valuations, Party Wall Awards and other services. Reach out to us today for building surveyors, valuers and party wall surveyors in London!
