Sharing is Caring: Party Walls and How They May Benefit You

Do you share a wall with your neighbor? Are you wondering what your rights are regarding conflicts, maintenance, or allocation of costs? This blog provides general information about party walls and how you can utilize them to your benefit.

What is a party wall?

A party wall is a shared wall that divides two separately rented or owned units. Generally, party walls are located upon or at the division line between adjoining landowners and are used, or intended to be used, by both owners in the construction or maintenance of improvements on their respective tracts. Party walls are most commonly found in apartments, condominiums, and office complexes, where different tenants share a common structure.

What is a party wall agreement and what is its purpose?

A party wall agreement is an agreement signed by two property owners who share a common wall, known as a “party wall.” Its main objective is typically to outline how the parties will handle any repairs, maintenance, or changes to the wall since these could potentially affect both parties. Such agreements will stipulate rules regarding a party’s rights to alter the wall. Once owners legally consent to the terms, party wall agreements are recorded in applicable land records, usually at the County Clerk’s Office.

In other words, the goal of a party wall agreement is to anticipate and solve disputes between parties before they ever happen. It can also address instances when one party has access to the other unit, in case repairs are needed.

While party wall agreements may not be as important when it comes to rental properties, party wall agreements can play an important role when it comes to properties such as rowhouses and commercial buildings where completely different owners share a wall. Since an issue with a shared wall can affect the owners on both sides of it, party wall agreements serve an important purpose in encouraging an organized approach to these matters. Without one, questions such as who is responsible and who owns the wall may arise, creating confusion and frustration in the process.

What if I want to make alterations to the wall?

Party wall agreements will also stipulate rules regarding a party’s rights to alter the wall. For example, the agreement often addresses aesthetic matters, such as what colors the exterior can be painted. The agreement may also stipulate that the parties can decorate the wall. If one party wishes to make structural changes, the agreement will usually stipulate that they need to consult with and obtain the consent of the shared owner.

Who creates a party wall agreement?

Once owners legally consent to the terms, party wall agreements are recorded in applicable land records, usually at the County Clerk’s Office. The builder of a shared property is usually the one who creates the party wall agreement and records it with the county. Sometimes it’s an HOA that creates and enforces it. Therefore, you normally do not have to create one yourself. The agreements run with the land, meaning they will exist on the property no matter who owns it.

Is a party wall binding on subsequent purchasers? If so, can it be modified?

Yes, generally party wall agreements bind subsequent purchasers. Party wall agreements are enforceable as covenants running with the land, so that future owners or assignees are bound by the agreement. So, when the buyers purchase the property subject to the party wall agreement, they have the same rights and bear the same burdens that were originally imposed under the party wall agreement. These rights and burdens “run with the land” and are in a sense attached to the property itself regardless of who the owners are.

Party wall agreements can usually be modified upon the mutual agreements of the parties. If a subsequent purchaser finds that a provision of the agreement is not working for them, they may work with the other party to come to an agreement to change that provision and record it in the real property records of the county. If they cannot agree, a good party wall agreement anticipates such disputes and provides a mechanism to resolve them.

Can a party wall agreement be refused?

If the agreement is part of an HOA in a condo, townhouse, or apartment complex, a new tenant or owner is usually bound to the party wall agreement when they move in since it is already binding on other tenants in the complex. If you are creating a new party wall agreement with another owner, though, then obviously there will be some compromises made and an agreement may be refused altogether if the parties cannot come to an amicable agreement. Once the agreement is filed with the County Clerk’s Office, though, then it becomes a legal document, and the parties are legally bound to the terms of the agreement.

Should I be worried about buying a property with a party wall agreement?

No, party wall agreements are quite common and actually reduce issues rather than create them. However, make sure to check if a property you are considering buying has a party wall agreement, because it could affect your future use.

If you have any questions about party wall agreements or you’re looking to create one, GLO can help you through the process and provide any assistance you may need. Fill out an interest form today to see if GLO can help you.

GLO has prepared this blog to provide general information on legal issues that may be of interest. This blog does not provide legal advice for any specific situation and this does not create an attorney-client relationship between any reader and GLO or its attorneys. GLO engages clients only through specific fee arrangements and signed engagement letters. GLO does not guarantee any results.