Sharing Is Caring: Understanding Party Wall Agreements and the Rights of Adjoining Homeowners

For homeowners buying or selling a property with a shared wall or roof—such as in a duplex, townhome, or other attached dwelling—there may be legal responsibilities that extend beyond the boundaries of the individual unit. Properties that share structural features, commonly referred to as Party Walls, often require owners to coordinate on issues like maintenance, repair, and access. These responsibilities should be clearly defined and addressed in a Party Wall Agreement.

Understanding the legal obligations and responsibilities created by a Party Wall Agreement is essential to ensuring your transaction is completed smoothy, you protect your investment and minimize future conflicts. 

What Is a Party Wall?

A Party Wall is a shared wall or structural feature—such as a roof or utility connection—that separates independently owned or leased units. These are commonly found in duplexes, townhomes, apartments, condominiums, office complexes, and other attached structures.

The defining characteristic of a Party Wall is that it serves a functional or structural purpose for both properties. The Party Wall may straddle the boundary between two parcels, with each owner holding title to the portion on their side and benefiting from an easement that allows mutual support and use. In some cases, a Party Wall may be located entirely on one owner's land but still provide structural support to both properties. Regardless of the physical layout, the responsibility for maintaining and repairing the wall is typically shared by both property owners.

What Is a Party Wall Agreement?

A Party Wall Agreement, sometimes referred to as a Shared Facilities Agreement or Common Wall Agreement, is a legally binding contract between property owners who share a structural element. A well-drafted Party Wall Agreement provides structure, promotes cooperation, and minimizes the likelihood of costly legal conflicts between neighbors by clearly defining rights and obligations related to the shared wall or features.

The agreement typically addresses maintenance responsibilities, cost allocation, and procedures for repairs or modifications. It often includes access or easement  rights for one party to enter the other’s property if necessary for maintenance or repair and may require mutual consent for structural changes. These agreements are often prepared by the developer and recorded in the county land records before any units are sold.  In other more rare cases, adjoining owners may enter into or amend a Party Wall Agreement after purchasing their properties. While a party Wall Agreement is not a homeowners’ association (HOA), a Party Wall Agreement plays a similar role in governing the care and use of common elements and establishing fair procedures for dispute resolution.

Are Party Wall Agreements Binding on Future Owners?

Yes. When properly drafted and recorded, Party Wall Agreements are legally binding on future property owners. Under Colorado law, such agreements are treated as covenants running with the land, meaning the obligations and rights outlined in the agreement attach to the property itself, not just to the original parties.

Party Wall Agreements can typically be amended or terminated by mutual consent of the affected property owners. Any modifications should be formalized in writing and recorded to ensure enforceability. A well-prepared agreement will also include provisions for dispute resolution—such as mediation or arbitration—to prevent minor disagreements from escalating into litigation. To understand how to properly prepare a Party Wall Agreement, read our blog Preparing Party Walls Agreements for Duplex Owners and Developers.

Why Party Wall Agreements Are Often Overlooked—And Why That Can Be a Problem

A common risk is that a buyer may not realize a Party Wall Agreement exists or fails to understand its legal import until after closing. This can lead to unanticipated obligations and avoidable disputes with neighbors.

When purchasing a property subject to a Party Wall Agreement, buyers should carefully review its terms during due diligence to avoid surprises and legal disputes. A well-drafted Party Wall Agreement defines what one owns and outlines who is responsible for damage and how repair costs are allocated for shared facilities. It may also mandate that each owner carry insurance to cover damage to the shared structure.

Buyers should understand any standards for the quality and timing of repairs, as well as easement rights that allow one owner to access the other’s property for inspections or maintenance. Most agreements include a dispute resolution clause, such as mandatory mediation or arbitration, and may also limit or prescribe legal remedies. Failure to abide by the terms of the party wall agreement can result in financial penalties and liens against a non-performing owner’s unit.

Most importantly, the agreement provides legal clarity, reducing the risk of ambiguous or conflicting expectations between neighbors. Understanding the Party wall agreement up front helps protect a buyer’s investment and ensures smoother co-ownership of shared structures. Read our blog 3 Common Issues in Real Estate Transactions: the Home Inspection, Earnest Money, and Party Wall Agreements for other common issues buyers may overlook.

How GLO Can Help

If you are considering purchasing a property that is subject to a Party Wall Agreement, or if you already own such a property and need help interpreting your rights and obligations, Geraghty Law Office (GLO) can assist. We review existing Party Wall Agreements to help clients understand their legal responsibilities, identify potential risks, and assess compliance with current law.

If your property lacks a Party Wall Agreement, GLO can prepare one tailored to your needs. Whether you're planning proactively or addressing an active issue, we’ll help you establish a clear and enforceable legal framework. To learn more about how GLO can help guide you through party wall issues, read Party Wall Agreements.

Please fill out an Intake Form to inquire about working with GLO.

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 signed fee agreements. GLO does not guarantee any results.

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