SPECIAL FEATURE: Understanding party wall legislation – The guide for conveyancers – Stokemont
Stokemont have written a feature article that looks at understanding party wall legislation – The guide for property lawyers and conveyancers.
The Party Wall etc. Act 1996 legislation, throughout this piece I will refer to it simply as ‘the Party Wall Act’, has profound implications for homeowners, developers, and conveyancers alike. In my role as a party wall surveyor I am often asked about the act and how it interacts with conveyancing work, so today I will explore the key aspects of it and exactly how it crosses over with the work carried out by conveyancers.
Stokemont surveyor
What is the Party Wall Act?
The Party Wall Act is a piece of UK legislation that provides a framework for preventing and/or resolving disputes concerning party walls, boundary walls, and excavations near neighbouring buildings.
The first step in fully understanding the legislation is knowing exactly what a party wall even is. A ‘party wall’ is a wall that stands on the land shared by two or more owners and forms part of a building. For example, a party wall could be the wall separating a semi-detached house, or the floor between flats.
The Party Wall Act allows property owners to carry out certain works while providing protection and peace of mind to the adjoining owners. The types of works covered by the Party Wall Act typically include:
Building and/or altering a party wall or structure.
Excavating within three or six metres of a neighbouring building or structure, depending on the depth of the new foundations.
How does the Party Wall Act interact with property law and conveyancers?
Residential property lawyers and conveyancers need to be aware of the Party Wall Act for several reasons, and ultimately knowledge of the act will help as and when anything related to a party wall comes up during a project. Below I have gone into more detail on the different ways in which the party wall act will overlap with the day-to-day work of a conveyancer or property lawyer.
During property transactions
When a property transaction is being undertaken, the conveyancer will need to consider whether the Party Wall Act applies. For example, if a buyer intends to undertake work that falls under the Party Wall Act, they will need to be informed of their obligations and consulting with a party wall specialist may avoid future legal issues and/or stress.
Alternatively, if a neighbour has carried out works already, a buyer will want assurances that these were done in accordance with the Party Wall Act so that they aren’t liable for any future damage that may occur from that prior work.
Resolving disputes
The Party Wall Act also offers a dispute resolution process that property lawyers may need to navigate. If a party wall notice has been served and consent is not given within a specified period, then a dispute is deemed to have arisen. At this point, surveyors will be appointed to resolve the dispute, which can be a complex process and require legal input at times. Being familiar with the act in such cases will make dealing with those involved and any agreed surveyors that much easier.
Ensuring compliance
Property lawyers are also tasked with ensuring compliance with the Party Wall Act. For example, if a client is planning to carry out work that falls under the act, they need to ensure that the correct notice is served and that a party wall award is agreed upon if necessary. Failure to do so could result in increased legal risk and/or cost them should any damage to the party wall arise.
The risks of not complying with the Party Wall Act
Failing to comply with the Party Wall Act when undertaking works covered by the act can present a number of risks including:
1. Legal disputes – Possibly the most serious risk of not complying with the act is the potential for legal disputes. This could result in court proceedings, which are often expensive and time-consuming.
2. Financial Consequences – If works cause damage to the adjoining property and the building owner has failed to comply with the act, they could be held liable for repairs.
3. Delays in Construction – If the building owner proceeds with works without serving the necessary notices or obtaining the adjoining owner’s consent, the adjoining owner may seek to stop the works through a court injunction. This could lead to significant delays and additional costs.
4. Potential Loss of Sale – Future buyers (and their solicitors) will want to ensure that any previous works have been carried out in accordance with the Party Wall Act. If they haven’t, this could affect the property’s value or even lead to a loss of sale.
Not knowing of the Party Wall Act will not be an acceptable excuse for failing to comply, so it is vital that building owners are made aware of what they need to do before any works begin.
The role of party wall surveyors
Party wall surveyors like me and the team at Stokemont play a crucial role in administering the Party Wall Act, and conveyancers may find themselves working closely with an agreed party wall surveyor at times. They are often involved in preparing and serving notices, agreeing party wall awards, and resolving any disputes that may arise during or after the building works.
In simple terms, the party wall surveyor’s role is to ensure that the Party Wall Act is properly implemented, and that the interests of both the building and adjoining owners are protected.
Party wall surveyors will be appointed by either the building owner (the person doing the work) or the adjoining owner (the person affected by the work), or they can be an agreed surveyor working on behalf of both parties.
It is important to note that party wall surveyors must act impartially, regardless of who appoints them. The property owner hiring the surveyor is not necessarily going to get a favourable outcome just because they are the one who hired the surveying professional.
While property owners and developers can serve a party wall notice (the documentation notifying the owner of a neighbouring property that you intend to carry out building or renovation works which may affect a shared wall, boundary and/or structure) themselves, they can’t act as their own party wall surveyor.
That being said, the Party Wall Act does not specify that the acting surveyor needs to be an experienced and/or trained practitioner. So theoretically anyone besides the property owners can act as a party wall surveyor. Of course, hiring a surveyor with a deep understanding of the act and experience in dealing with party wall matters will often result in less stress and a smoother building project.
Looking to hire a party wall surveyor?
Read this other Inside Conveyancing guide on how to avoid a cowboy one here.
Conclusion
Understanding the Party Wall Act is crucial for any residential property lawyer or conveyancer. While it is primarily the domain of surveyors, the Party Wall Act has significant implications for property transactions and dispute resolution, and compliance is paramount.
By understanding the act and working closely with experienced surveyors, property lawyers can help their clients navigate this complex area of law with confidence and with minimal risk associated with any party wall related work.
Party Wall FAQ:
What happens if a party wall agreement is breached?
When a Party Wall Agreement (sometimes known as a Party Wall Award) is in place, it becomes a legal requirement for all parties involved to adhere to its terms.
A breach of the party wall agreement can occur when either the building owner (the individual planning the works), or the adjoining owner (the neighbouring party), fails to abide by the stipulations set out in the agreement.
In the event of a breach, there are several potential consequences ranging from legal disputes and court proceedings to the aggrieved party calling for a halt to any further works and compensation for any damage that has occurred.
If a breach has occurred, you should consult both the agreed party wall surveyor and your conveyancer. Both will be able to work with you to resolve any issues with the other party in a timely and cost effective manner.
Do I need a solicitor for a party wall agreement?
Generally speaking you do not need a solicitor to assist with a simple party wall agreement. However, if any disputes or disagreements do arise then it would be wise to speak with a legal professional to make sure that you understand exactly where your liability and obligations begin and end.
Can party wall matters impact my property sale or purchase?
Absolutely, a party wall matter can certainly impact your property sale or purchase. Whether you are buying or selling a property, any legal professionals involved will want to ensure that all matters relating to the properties party walls have been handled correctly.
If any works have been carried out that fall under the Party Wall Act, the buyer will want to see proof that they have been carried out within the acts requirements. Any unresolved or ongoing party wall disputes may also deter potential buyers, and hold up the transaction. It is in everyone’s interest to make sure that any party wall matters have been handled within the act.
Will a party wall matter impact my property price?
It is unlikely that a party wall matter will directly impact the price of your property, but there may well be an indirect impact on the price that you end up selling your property for.
For example, if you can provide proof that any party wall related works complied with the Party Wall Act, potential buyers will have more confidence that they won’t be inheriting any potential legal issues or liability further down the line. This added confidence may translate into a higher purchase price.
If a party wall breach has occurred, potential buyers may wish to put in a lower offer to compensate for the added risk that they would be taking on in the event that the adjoining owner decided to seek damages.
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