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Premises Condition Report

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Premises Condition Report

The 6th Edition 2012 of the Auckland District Law Society Deed of Lease has provision for the inclusion of a “Premises Condition Report” that can be attached within the Sixth Schedule of the Deed.

This provision is designed to help clarify the process of identifying ‘make good’ obligations at lease termination stage which can be many years from the lease commencement. In providing more definitive clarity at this future date it is expected that the number of disputes relating to quantum and cost of the making good will be substantially reduced.

The premises condition report will provide independent evidence of the condition of the premises at commencement date and will include a summary of the landlord’s fittings and fixtures. With the exclusion of fair wear and tear the tenant is obliged to return the premises in the same clean order repair and condition to the landlord at lease termination.

 

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FAQ

Is a Premises Condition Report a mandatory requirement of the ADLS Deed of Lease?

No it is not, however provision is made quite clearly for it and its inclusion and embodiment into the deed as Schedule 5.

Is a Premises Condition Report expensive and who pays?

No, by building surveying standards they are not expensive. They are simply a recording of the condition of the property at the time of lease commencement. Either party can commission and pay for the report or in fact both parties can share the costs.

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