At Terence Anderson we under take pre lease schedules of condition on all types of commercial buildings and also on residential buildings in Party Wall Matters.
A schedule of condition is important because it mitigates financial risk for a tenant or an occupier entering into a commercial lease with a landlord prior to signing a lease.
We often also provide a Pre-Lease Building Assessment report to advise the ingoing Tenant of their likely maintenance liabilities over the term of the lease and if relevant, identify ‘high risk’ items, which should ideally be negotiated out of the lease, for example; an aged flat roof that is already in disrepair.
A schedule of condition should also be included as a fundamental part of the heads of terms for a tenant entering into a commercial lease agreement, whether it is on a Full Repairing Lease or an Internal Repairing Lease agreement.
The purpose of a schedule of condition is that it records the factual condition of a property before any legal agreement is entered into.
The schedule of condition brings certainty to a property transaction and removes any ambiguity that otherwise may had occurred had a schedule of condition not been in place and reduces risk to tenants.