A schedule of condition is a document that simply records the condition of a building at a particular moment in time. A schedule of condition has two main uses: firstly, to record the condition of a building at lease commencement - prepared on behalf of a tenant to limit their future dilapidation repairing liability. A well-advised tenant can save thousands of pounds at lease termination by requesting a schedule of condition be attached to their lease.

The second situation where a schedule of condition is often used is where the works involve The Party Wall etc. Act 1996. If a building owner wishes to carry out works to party walls or floors, or undertake certain excavations, then a Party Wall Award must be produced. A schedule of condition is prepared on the adjoining owner's building to record its condition prior to the building works commencing. The schedule of condition is later re-examined to determine whether the building works caused any damage to the adjoining property. If any such damage is noted when compared with the schedule of condition, the 'building owner' carrying out the works would be obliged to compensate or remedy the defects on the adjoining property.