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Schedule of Condition for commercial tenants

If you are a commercial tenant taking a lease on full repairing and insuring (FRI) terms, a Schedule of Condition is the single most important protective document in the transaction. It limits your repairing obligation by reference to the documented condition at lease grant.

Author
CBC Surveyors
Updated
Updated 2025
Reading time
7 min read

Overview

Without a Schedule of Condition, an FRI tenant is liable to keep the property in a standard of repair appropriate to its age and character, regardless of what they actually inherited. With a properly prepared schedule, the tenant's repairing obligation is qualified: they cannot be required to put the building into a better condition than the one documented at lease grant.

Why FRI leases make this essential

An FRI lease places the full burden of repair and insurance on the tenant. The repairing covenant typically requires the tenant to "keep the property in good and substantial repair" and to "yield up" in the same condition. Without a baseline, that obligation is open-ended.

What the schedule protects against

The schedule protects against being held liable for: pre-existing defects, fair wear that pre-dated the lease, structural issues that were already present, and decorative deterioration that the tenant did not cause.

What to instruct, and when

Instruct an experienced specialist surveyor specialising in Schedule of Condition work, before the lease is executed. The schedule should be referenced in the lease itself by way of an amendment to the repairing covenant, your solicitor will draft the appropriate wording.

Common tenant mistakes

Treating the schedule as a procedural formality, accepting a generic lightly-photographed schedule, instructing a non-specialist building surveyor, or worst of all, completing the lease without a schedule and only instructing one when the dilapidations claim arrives.

Specialist insight

What we say to every tenant client

The schedule is not a tick-box exercise. It is the document your solicitor and surveyor will rely on when the dilapidations claim arrives, possibly years after the people who negotiated the lease have moved on. Treat it as a long-term evidential asset, not a transaction cost.

, CBC Surveyors

Key takeaways

What to remember

  • 01Without a schedule, FRI tenants have an open-ended repairing obligation.
  • 02A properly prepared schedule limits the tenant's covenant by reference to documented condition.
  • 03It must be prepared before lease execution and referenced in the lease.
  • 04The schedule defends against claims for pre-existing defects and wear.
  • 05Specialist Schedule of Condition surveyors materially out-perform generalist building surveyors here.
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