Commercial Property : Schedule of dilapidations

Schedule of dilapidations

On termination of a lease, a tenant may be served with a schedule of dilapidations. This is essentially a schedule containing details of the tenants breach(es) of its repair obligations contained in the Lease

Onerous wording in a repair clause can result in an obligation arising on the tenant to restore the property to a better condition than it was in on taking the lease. The words to “keep” or “put” can result in such an obligation.

An onerous repair clause can result in a detailed Schedule of Dilapidations containing detailed repair and upgrade works which could be a costly and unforeseen expense for the tenant.

Often this is not something that a tenant considers at the beginning of a lease however it is one of the main reasons why a commercial property expert should be consulted in relation to a commercial lease as they can negotiate the wording to remove or lessen any such obligation. For instance the wording of the repair clause could be negotiated to include, amongst the rewording, reference to a schedule of condition which would set out the condition of the property at the beginning of the lease.

For further advice please contact Cosgrove Gaynard Solicitors on info@cgsolicitors.ie or 01- 6139191.