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Dilapidations - new Protocol |
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A new version of the Dilapidations Protocol has been introduced by the
RICS. Whilst there are numerous minor changes, the key point to
appreciate is that the original Protocol dealt primarily with the breaches
of repairing obligations. The new Protocol however deals with claims for
damages in respect of all aspects of the ‘physical state’ of the property
at the end of the lease.
This will therefore include reinstatement and/or
redecoration, as well as any other work (eg renewal, replacement,
maintenance). The significant difference, therefore, is that the Protocol
is no longer restricted to ‘repairs’ only.
One other point to note is in relation to L’s diminution valuation (ie when L
gets an expert to calculate the loss in value to L’s reversion caused by the
dilapidations). Under the original Protocol this had to be carried out at a very
early stage in the process, but that could lead to disproportionate costs and
it is now agreed that it can be obtained later in the process (but before
proceedings). The new Protocol is available at www.pla.org.uk.
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November 2006 |
