When (and Why) You Need a “Party Wall Agreement” With Your Neighbors
When you buy something, you expect to own the item outright. If you buy a book at a bookstore, you can read it, tear out the pages and make paper airplanes out of it, or use it to balance a wobbly table—and no one can stop you. If you buy a house with some property around it, you expect to be able to do whatever you want with the walls of your house (within legal boundaries, of course), but if your house is attached to someone else’s house (apartment or row house) that’s the situation), things can get a little complicated because some of the walls you just bought might be party walls.
A “party wall” is not a party wall designed for entertaining, but a wall that belongs to two parties – you and your neighbor . As with any property owned by more than one person, things can quickly get weird if you disagree about how to use the property. That’s why you should consider entering into a Party Wall Agreement (PWA) with your neighbor.
What is a party agreement?
A party wall agreement looks a lot like this: It defines how your shared wall can be used, as well as the general responsibilities of the shared owners. Why do you need it? PWA can cover a wide range of potential scenarios between you and your neighbor:
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Access to the other side of a wall (known as an easement ) for necessary repairs and maintenance to the wall or other areas of your property that can only be accessed through the wall.
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Wall allowed (in case your neighbor wants to use your bedroom wall as a handball court)
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Determining the required maintenance that every owner should perform.
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Determining what will happen if one owner damages the party wall in any way.
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How will repairs that may result in the removal, relocation, or other modification of a shared wall be handled or discussed?
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Determining what happens if one owner does not comply with the agreement—for example, the PWA may limit monetary damages or require arbitration instead of litigation.
When you think about it, the need for a formal agreement becomes obvious. And developing it before any conflicts or disagreements arise is a very good idea. Another benefit of having a formal agreement covering the party wall is that these agreements are kept by the local county clerk or other land use office so potential buyers can rest assured that there will be no nasty surprises if they buy your home (usually , these agreements remain in effect for future owners until both parties modify or terminate the agreement).
If you live in a home managed by a homeowners association (HOA) or other organization, it’s likely that party wall agreements are included in the HOA rules, so it’s worth doing your research before you decide to try to develop your own.
Creating an Agreement
If you have a shared wall, creating a PWA is quite simple:
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Discuss. Talk to your neighbor and work out what the agreement should say. You can’t unilaterally impose a Party Wall Agreement, so you’ll need your neighbor’s participation.
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Create an agreement. It’s best to use a real estate attorney who knows local laws to draft the agreement, but you can find free agreements that can be modified and downloaded online. However, if you use a downloaded form, it is still a good idea to have an attorney review it.
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Save this. Once you and your neighbor have agreed on the terms and signed the agreement, it must be filed with the appropriate office. This will vary from municipality to municipality, but most often it will be done at the county clerk’s office where it will be linked to the deed for the two properties.