A Condition Report or “Schedule of Condition” is a document that describes the condition of a physical asset at a particular point in time. This type of report is vital in avoiding future disputes relating to prior condition of that asset.
Typical uses of a Condition Report include;
To define the condition of the demised premises at the start of a lease
To define the condition of adjoining properties prior to the commencement of construction works, particularly those involving excavation and vibration
To benchmark environmental condition of soil / groundwater prior to occupation of a site by an occupier potentially contaminating activities
To define condition and operation of building services to set benchmark or prior to construction works
To register personal property on the Personal Property Securities Register
Most people who have rented living accommodation (or hired a car) are familiar with the agent requiring them to sign to confirm the condition of the property before the lease starts. Commercial and industrial leases have far larger sums of money but do not always have a Condition Report in place to protect both parties.
Mansfield Property Advisory prepare Condition Reports that include;
Comprehensive photographs of all areas in a logical sequence
Include floor and partition layout plans where available.
Include Building Services information where available (e.g. performance reports, commissioning data, certification, plans, etc.)
Description of each element and ascribe a condition rating.
dentification of fixtures and fittings ownership (e.g. landlord / tenant)
Declaration page for ease parties to acknowledge accuracy of document
It should be stressed that a Condition Report is a neutral document intended to record factual condition, it is not intended to provide advice.
This factual, neutral purpose assist in;
Reducing the potential for future disputes as both parties have signed the document to confirm they agree it is an accurate record of condition at the specific point in time
Reduction of cost as fee for report preparation can be split between landlord and tenant.
Identification of any changes in condition or alterations to the premises
Identification of disrepair, decrease in performance or damage
Reduction in liability for tenant having to rectify pre-existing disrepair.