Most homeowners and commercial property owners have to deal with shared walls (“party walls”) at some point. These walls may be interior or exterior.
For apartment buildings, condos and commercial properties that house multiple businesses, party walls separate units. When it comes to commercial real estate, depending on the type of commercial property involved and the zoning ordinances, two very different kinds of businesses can potentially share interior walls.
Boundary lines and party walls aren’t always in the same place
Many boundary disputes involve exterior party walls. This often happens when there’s a wall or fence separating properties. This obstacle may have been there far longer than individual property owners have, and may not actually be on the boundary line separating their properties. That means one party may be unknowingly using land that legally doesn’t belong to them without an easement (which would allow them to use that land without owning it).
Generally, there’s no problem until one owner decides to determine exactly where that boundary line is. Maybe they realize they’ve got an extra foot of width and since the wall or other divider is on their property, they likely have the right to remove it. Alternatively, serious damage to a wall caused by a hurricane or other act of God or person can bring the matter to everyone’s attention.
The importance of a party wall agreement
Before this happens, and especially if you’re buying or selling a new property, it’s wise to find out whether there’s a party wall agreement (PWA) in place and whether it transfers when a property changes ownership or if it becomes invalid if one of the signers sells their property.
A PWA can codify a number of matters. If there isn’t a PWA in place, it may be worthwhile to work with your neighbor to rectify that.
A PWA can specify:
- How expenses are shared between owners for maintenance, repair and replacement if necessary
- Whether replacement, relocation or other alterations require both owners’ approval
- Where the property line is in relation to the location of the wall
Note that if a wall is fully within one side of the property line, the other party may need an easement to be able to use that area up to the wall.
Whatever you’re reviewing a current PWA before buying a property, seeking one or you’re already looking at a potential party wall-related dispute with a neighboring property owner, it’s wise to have sound legal guidance to protect your property rights. Such matters are rarely straightforward.