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Dilapidation Claims

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Dilapidation Claims

  • Definition of Dilapidation:
    • Dilapidation refers to the state of disrepair or damage to a property that goes beyond normal wear and tear.
  • Lease Obligations:
    • Typically, lease agreements outline the tenant’s responsibilities for maintaining and returning the property in good condition.
  • Schedule of Dilapidations:
    • Landlords may serve a Schedule of Dilapidations, a document that details the specific areas of disrepair or damage and estimates the associated costs for remediation.
  • Interim and Terminal Dilapidations:
    • Interim dilapidations refer to issues identified during the lease term, while terminal dilapidations are assessed at the end of the lease.
  • Repair and Remediation:
    • Tenants are generally obligated to undertake necessary repairs or remediation works to bring the property back to the condition specified in the lease.
  • Negotiation:
    • Landlords and tenants may engage in negotiations to settle dilapidation claims amicably, often involving discussions on the scope of repairs and the associated costs.
  • Expert Assessments:
    • In some cases, expert assessments may be required to determine the extent of dilapidations and the fair cost of remediation.
  • Quantifiable Losses:
    • Dilapidation claims are usually based on quantifiable losses, including the cost of repairs, loss of rental income during remediation, and any decrease in the property’s market value.
  • Legal Proceedings:
    • If an agreement cannot be reached, landlords may resort to legal proceedings to enforce dilapidation claims through the courts.
  • Tenant Defenses:
    • Tenants may dispute dilapidation claims, arguing that the damage was pre-existing, falls within acceptable wear and tear, or that the estimated costs are exaggerated.
  • Lease Covenants:
    • The terms of the lease covenants play a crucial role in determining the validity and scope of dilapidation claims, and these should be carefully reviewed by both parties.


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