Party Wall Agreements
Understanding Party Walls and Party Wall Agreements in Colorado
A Party Wall Agreement is an essential legal document for properties that share structural elements, such as walls, roofs, or utility lines. Common in duplexes, townhomes, and condominiums, these agreements outline the responsibilities of neighboring property owners and help prevent disputes over maintenance, access, and liability.
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, condominiums, apartments, office buildings, and other attached structures. The defining feature of a Party Wall is that it serves a functional or structural purpose for both units.
Party Walls may straddle the boundary between parcels, with each owner holding title to the portion on their side and benefiting from an easement that allows mutual support and use. In other cases, the wall may sit entirely on one property but still support both units. Regardless of physical layout, the responsibility for maintenance and repairs is typically shared.
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. Its purpose is to prevent disputes by clearly defining each owner’s rights and responsibilities related to the shared structure.
These agreements typically address maintenance obligations, cost allocation, and procedures for making repairs or structural changes. They often grant easement rights so that one owner can enter the other’s property when necessary to inspect or maintain the shared wall. Mutual consent is usually required before making any structural alterations.
Party Wall Agreements are often drafted by a developer and recorded in the county land records before any units are sold, ensuring that the agreement becomes binding on future owners. In other cases, owners may choose to create or update a Party Wall Agreement after purchasing their properties. While not a substitute for a homeowners’ association, a Party Wall Agreement can serve a similar purpose by governing shared property and establishing procedures for dispute resolution—without ongoing monthly fees.
Are Party Wall Agreements Binding on Future Owners?
Yes. When properly drafted and recorded, Party Wall Agreements are enforceable against future owners as covenants running with the land. In Colorado, these agreements bind successor owners if the original parties intended to bind future owners, the agreement relates to the use, value, or enjoyment of the property, and the agreement is recorded in the county land records.
Why You Need a Party Wall Agreement When Splitting a Duplex
When subdividing a property into two units, a Party Wall Agreement ensures that both owners understand their responsibilities for maintaining and repairing shared structural features. It also sets expectations around future renovations, access rights, and how disputes will be resolved.
Without such an agreement, ambiguity can lead to legal conflict, delays, and uncertainty for current or future owners. In the absence of an HOA, the Party Wall Agreement may serve as the only framework for governing shared property. To learn more, read our blog post: Preparing Party Wall Agreements for Duplex Owners and Developers.
Common Issues Addressed in a Party Wall Agreement
Party Wall Agreements typically address key issues that support long-term clarity and cooperation between neighboring property owners. A well-prepared agreement should clearly define the shared or common elements—typically walls, roofs, driveways, or utility lines—and establish who is responsible for maintenance, repairs, and damage caused by negligence. It should also include provisions for cost-sharing, especially for utilities, and grant easement rights for access when inspections or repairs are needed. Crucially, the agreement should outline a dispute resolution process, such as mediation or arbitration, and provide a tie-break mechanism for two-owner properties. More than a formality, a Party Wall Agreement is a practical tool for ensuring shared ownership runs smoothly and fairly.
Due Diligence for Buyers
If you are considering purchasing a property that is subject to a Party Wall Agreement, you should review any existing Party Wall Agreement during the due diligence phase to ensure you understand your legal right and responsibilities. To learn more, read our blog post: Sharing Is Caring: Understanding Party Wall Agreements and the Rights of Adjoining Homeowners.
How GLO Assists with Party Wall Agreements
Geraghty Law Office assists homeowners, developers, and investors with drafting, reviewing, and modifying Party Wall Agreements. Whether you're developing attached units or purchasing a property with a shared wall, we provide clear legal frameworks to define obligations, reduce risks, and support long-term cooperation.
Contact GLO today to schedule a consultation and ensure your Party Wall Agreement is properly drafted, enforceable, and aligned with your long-term property goals.
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