Schedule of Condition – a snapshot in time

Schedules of Condition are commonly used in commercial leases, in party wall agreements and for many other purposes where negotiations may be taking place in connection with landlord and tenant matters. This can extend from residential properties through the range of offices, shops and industrial buildings.

A commercial full repairing and insuring lease (FRI lease) may say you do not have to return the premises to the landlord at the end of the lease in better condition than they were at the beginning. But you will need clear evidence of the condition of the building when you took it on. A Schedule of Condition attached to the lease, if this can be negotiated with the lessor, is a safeguard for later.