A party wall contract is a legal agreement between people who share a wall or boundary and it outlines how to maintain, repair, and modify the party wall or party fence wall. Having such an agreement can settle disputes and limit any further conflict.
In England and Wales, the Party Wall etc. Act 1996 applies to houses. It covers walls between semi-detached and terraced houses, and garden walls too.
Key Takeaways
- A party wall agreement is needed when work might affect a neighbour’s building.
- A Party Wall Notice must be given 1-2 months before starting work.
- Neighbours have 14 days to reply in writing to a Party Wall Notice.
- Not receiving a Party Wall Agreement can lead to legal complications and financial loss.
- The minimum cost of a Party Wall Award is about £1,000-2,000, says the HomeOwners Alliance.
- A party wall contract is needed to limit further neighbour disputes during building work.
Understanding Party Wall Contracts: A Comprehensive Overview
A party wall contract is for shared wall upkeep, repairs, and other alterations. So, knowing when you need one helps avoid neighbour relations breaking down. The Party Wall Act 1996 sets out legal rules for resolving issues and clarifies rights and duties for each owner.
The Act says you must give neighbours 1-2 months’ notice before starting your project, depending on the notifiable works (1 month for excavating or building a new wall; and 2 months for works to a party wall/structure). The adjoining owners have 14 days to reply to a Party Wall Notice. If they don’t, it’s seen as a disagreement. A surveyor must then brought in to resolve matters by virtue of an award. Examples of notifiable works include the following:
- Repairing a party wall
- Damp-proofing a party wall (e.g. inserting a DPC)
- Underpinning a party wall
- Cutting into a shared wall for beams (e.g. loft conversion)
- Raising or lowering a party wall
- Demolishing or rebuilding a party wall
A good party wall contract includes the names and addresses of those involved, a clear description of the works, and the terms of how works are to progress. The Royal Institution of Chartered Surveyors (RICS), Chartered Institute of Building (CIOB), and Residential Property Surveyors Association (RPSA) regulates accredited surveyors. However, the Faculty of Party Wall Surveyors (FPWS) is more specific to guiding Party Wall Surveyors in making sure they’re up to standard.
Grasping the party wall contract and knowing when you need one is important to avoiding problems and so following the Act’s rules in making sure the contract is complete, you can have a legally watertight agreement.
When Do You Need a Party Wall Agreement?
A party wall agreement is needed when two or more people share a wall or boundary and notifiable works are taking place, often in respect of semi-detached or terraced houses and commercial properties. You can avoid disputes by knowing your rights and responsibilities under the Act.
The Party Wall etc. Act 1996 says you need an agreement for shared wall work and so you must serve a party wall notice to the neighbour at least 1-2 months before starting. The notice should include the work’s details, like plans and specifications.
Here are some situations where you need a party wall agreement:
- Building a new wall up to or astride the boundary of two properties
- Making changes to an existing party wall, like raising or thickening it
- Excavating within 3 meters of an adjoining property and below the foundation level
A party wall contract helps prevent costly issues and keeps your project on time, on budget and up to specification, as explained in this video: https://youtube.com/watch?v=VYvHB_da9Ak
In short, a party wall agreement is vital for protecting everyone’s interests in a construction project. By understanding when you need one, you can ensure your project is completed efficiently and without issues (see Top 5 Things About Your Party Wall Agreements You Need to Know Before Renovating).
| Situation | Requirement |
| Building a new wall on or at the boundary of two properties | Section 1 Notice |
| Making alterations to an existing party wall or party fence wall | Section 3 Notice |
| Excavating within 3 meters of an adjoining property | Section 6 Notice |
The Essential Elements of a Party Wall Contract Template
Your surveyor will work on drafting a party wall contract template, which must include all necessary parts of a valid contract. A good agreement should list the terms and conditions of the shared wall and the associated works, including who is involved, where they are, and what the agreement says.
It’s also important to include supplementary documents like the notices, Schedule of Condition, drawings, etc. within the Party Wall Award. Standard clauses and terms should cover maintenance and repairs and the agreement should also outline the rights and responsibilities of each owner.
Required Documentation
Some important documents which you might say are included in a “party wall contract” are:
- A notice of intention to carry out work
- Drawings/plans
- Engineer calculations
- Schedule of condition
- Party Wall Award
Standard Clauses and Terms
Standard parts of a party wall contract might include:
- Provisions for maintenance and repairs
- Any authorised changes or modifications to the shared wall
- Access to the shared wall for maintenance and repairs
By adding these key elements to a party wall contract template, parties can make sure their agreement is suited to the project to prevent costly delays and clear up who should do what.
The Process of Obtaining a Party Wall Award
Getting a party wall award is key when you’re planning to work on a shared wall. It starts with sending a notice to the neighbour, which must be done 1-2 months before work begins. The notice should have the names and addresses of everyone involved, the work details, and when it will start.
The neighbour has 14 days to reply to the notice. If they don’t, it’s considered dissent. If there’s dissent, both sides must choose surveyors to make a party wall award. This award will cover the rules for the shared wall, including any changes, and who will do maintenance and repairs.
Getting a party wall award can take weeks to months, depending on the work. It’s important to talk to a party wall expert 2-3 months before starting to avoid delays. The party wall contract will show who has what rights and duties under the Act and the contract must be objectively fair for both owners.
Disputes often happen during construction and having a party wall award helps solve these problems by clearly stating the rules for the shared wall and thereby preventing conflicts. Appreciating how to get a party wall award and the role of a party wall contract helps ensure your project goes according to plan.
Roles and Responsibilities of Party Wall Surveyors
A party wall surveyor is required in solving disputes and making party wall awards. They check the shared wall, set the agreement terms, and make the award. The cost of hiring a surveyor varies based on the dispute complexity and their fees.
In London, adjoining owner’s surveyors charge about £250 per hour plus tax. Simple party wall awards start at £1,000. For complex projects, like basement conversions, costs can go over £10,000. Building owner’s surveyors usually quote a fixed fee, while adjoining owner’s surveyors charge by the hour.
Appointing a Surveyor
The Party Wall etc. Act 1996 says surveyors can’t be an interested party to the works, which means owners can’t act as surveyor. Making a Schedule of Condition is important to track any alleged damage later.
The Surveyor’s Duties
Once appointed, a surveyor can’t be removed unless they can’t act or pass away. They prepare the award, which is done after conducting a pre-works inspection and agreeing on the conditions. They might also do interim and final inspections after the award.
Cost Implications and Fees
Owners might find it hard to accept surveyors’ impartiality. Surveyors are there to solve disputes, not take sides. The RICS published a professional standard for party wall legislation in England and Wales in July 2019 (RICS Party Wall Legislation & Procedure), which describes this in more detail.
Party wall surveyors usually have backgrounds in building surveying, architecture, or construction law. They need to know the Party Wall Act well and have experience in solving conflicts. They oversee the party wall notice procedure, checking proposed works and deciding on the notice type to be served.
| Service | Fee |
| Simple party wall awards | Min. £1,000 |
| Complex projects (e.g. basement conversions) | £10,000+ |
| Adjoining owner’s surveyor (hourly rate) | £250 plus VAT |
In disputes, party wall surveyors help mediate the situation. They might do on-site inspections to check the impact of works on the party wall. Whether or not talks fail, they will issue legally binding awards and their guidance helps avoid legal issues, making construction safer.
Common Disputes and Resolution Methods
Party wall disputes can happen for many reasons, such as when there is a call for maintenance and repairs, changes to the shared wall, or simply not following the Party Wall etc. Act 1996. Knowing the terms of the party wall contract and the Act is key to solving these issues.
A party wall contract sets out what each owner must do and, if a problem arises, a surveyor can help by making a decision and issuing a party wall award.
The common disputes therefore include:
- Disagreements over maintenance and repairs
- Changes or modifications to the shared wall
- Failure to comply with the Party Wall Act 1996
To solve these problems, talking to a party wall surveyor is vital. They will effectively create a party wall contract for you. This award will detail the rules for the party structure, including any changes.
In some cases, disputes may need to go to county court, namely if owners are breaching the terms of the party wall contract. A solicitor specialising in party wall disputes can offer legal help and support, but there are significant costs associated with this.
| Dispute Resolution Method | Description |
| Party Wall Surveyor | A surveyor appointed to resolve the dispute and make a party wall award |
| County Court | A court that can provide legal advice on compliance with the party wall contract |
Understanding common disputes and how to solve them helps will assist in How to Keep Party Wall Costs Down and maintaining a good relationship with your neighbour.
Creating Your Party Wall Contract: Step-by-Step Guide
To make a party wall contract, you must follow several steps. First, gather all needed documents, including a notice of intention to work and any plans or specifications. These documents are key for the agreement, showing the shared wall’s terms and any changes.
Using a party wall contract template can help, which should cover the party wall’s terms and each owner’s rights and duties. You can find templates online or get one custom-made with a surveyor’s help. For more information, see Top 9 Questions About Party Wall Surveys. Important things to remember when making a party wall contract include:
- Notification: the building owner must write to the neighbour before starting work.
- Surveyor fees: the building owner usually pays all of the Party Wall Surveyors’ Costs on both sides.
- Dispute resolution: a good agreement can cut costs by 50% and make the project run more effectively.
By following these steps and remembering these points, you can make a detailed party wall contract, which should meet your needs and help avoid disputes.
Legal Implications and Enforcement
The legal side of a party wall contract is serious, because if someone breaks the contract, the other might receive damages or file an injunction. A party wall agreement is a legally binding deal.
Breach of Contract Consequences
Not following the Party Wall Act can cost you a fair amount, including legal fees and damages. In one case, Nutt v Podger, damages were £4,000 for breaching the Act.
Appeals Process
If an owner doesn’t agree with a party wall award, they can appeal to the county court, but the judge usually can not alter the award if it is valid. The court takes not following the Party Wall process seriously and this can lead to legal battles and extra costs. You have 14 days to appeal a party wall award.
| Party Wall Act Section | Description |
| Notice Period | At least 1-2 months before starting work |
| Response Time | 14 days to respond to a party wall notice |
| Award Challenge | 14 days to challenge a party wall award in the county court |
Conclusion: Ensuring a Successful Party Wall Agreement
A well-made party wall contract helps limit disputes arising. By following this guide, property owners can make a legally strong party wall agreement, which protects their interests and helps construction projects go smoothly.
Creating a party wall contract needs detailed documentation and a clear agreement with the help of party wall surveyors. It’s important to review it carefully before finalised and choosing impartial surveyors is key to handling legal matters, ensuring the agreement is fair and enforceable.
A successful party wall agreement needs open communication and teamwork. Neighbouring property owners must be willing to work together and, by focusing on the details, you can avoid expensive legal proceedings so that the construction project can move forward without difficulties arising.
FAQ
What is a party wall contract?
A party wall contract is a legal agreement between people who share a wall or are involved in works that are in close proximity to their property. It covers how to maintain, repair, and alter party walls/structures.
What is the legal status of party wall agreements?
The Party Wall etc. Act 1996 rules over party wall agreements, helps solve disputes and makes sure everyone knows their rights.
What are the key components of a valid party wall contract?
A good party wall contract has the names and addresses of the parties, describes the shared wall and the agreement terms.
When do you need a party wall agreement?
You need one when you share a wall with someone, like in semi-detached houses, and you are planning to carry out works. Other forms of notifiable works include digging within 3-6m of a neighbouring property and below the level of their foundations; or building a wall on the line of junction. It’s also needed for commercial properties.
What should a party wall contract template include?
A good template should have the parties’ details, a description of the wall in question and the associated works plus other details concerning how the project is to be carried out with nuisance kept to a minimum.
What documentation is required for a party wall contract?
You need a notice of works and a party wall award, preferably with a schedule of condition also included.
What are the standard clauses and terms of a party wall contract?
It includes rules for maintenance, repairs, and any wall changes such as beams not protruding beyond the halfway point of the shared wall.
What are the rights and responsibilities of the parties in a party wall contract?
Parties have the right to access the wall for upkeep and must keep it in good shape.
What is a party wall award?
It’s a document from a surveyor detailing how the project must be conducted in respect of the notifiable works (see Different Types of Work for Party Wall).
What is the role of a party wall surveyor?
A surveyor resolves disputes and issues awards (see What is a Party Wall Dispute?). They inspect the wall, set terms, and make the award to benefit both owners fairly.
What are the cost implications and fees of appointing a party wall surveyor?
Fees depend on the dispute’s complexity and the surveyor’s rates with the building owner paying for all fees, ordinarily.
What are the legal implications of a party wall contract?
Breaking the contract can lead to serious legal issues, as non-compliance can result in damages or other legal action such as an injunction being filed, which halts the progress of the works.
What is the appeals process for party wall disputes?
The appeals process is outlined in the Party Wall etc. Act 1996. If unhappy with an award, a party can appeal to the county court, but they typically do not have jurisdiction to overrule the award if it is valid.
