Drafting a Party Wall Agreement

Note: Links to our free templates are at the bottom of this long guide.
Also note: This is not legal advice

Introduction

Drafting a Party Wall Agreement is essential for any adjacent property owner who wants to ensure the rights and interests of both parties are protected, thus avoiding costly and time-consuming disputes. A Party Wall Agreement (or PWA) is a legally binding document that outlines the rights and responsibilities of two or more adjacent property owners - such as sharing walls, floors, and ceilings; as well as granting permission to build upon or make alterations to an existing structure. The agreement is designed to provide a consensus on how each party should use the property, access it and make alterations without necessarily having to take legal action.

At Genie AI, our team has seen first-hand how important these agreements are in dispute situations. We believe that everyone should consider having one in place - which is why we offer free resources on our template library to help anyone draft this document safely.

A well crafted Party Wall Agreement should include details such as the obligations of both parties with respect to use of the existing structure; set out clearly defined rights for each party; note any potential problems that could arise; and detail how any alterations made need permission from both parties in order for it to be valid. It can also provide protection for both parties’ properties if either has plans for major renovations or extensions - making it all the more important that its contents be carefully considered before signing off on it.

To ensure you have all your bases covered when drafting your own agreement, read on below for our step-by-step guidance and information on how to access our community template library today. No Genie AI account required - we just want everyone who needs a PWA document drafted safely!

Definitions

Party Wall: A wall or other structure located on the boundary of two or more properties and used to separate them.
Scope of Works: The type of work to be carried out, the start and end dates, and any other relevant details.
Responsibility: Who is responsible for the costs associated with the works, who will be responsible for obtaining permits, and who will be responsible for ensuring the works are carried out safely and to an acceptable standard.
Permits: Documents or licenses needed from local authorities in order to carry out the works.
Milestones: Stages of the work that need to be achieved in a timely manner.
Rights: Who has the right to access the property, who is responsible for any damage caused by the works, and any other relevant rights.
Liabilities: Who is liable for any damage caused by the works, and what compensation will be provided if any damage occurs.
Dispute Resolution: Process for resolving any disputes that may arise from the agreement.
Signature Process: Who is required to sign the agreement, and how the signatures will be collected.
Inspections: Checks by the local authorities or other relevant bodies to ensure the work is being done safely and to an acceptable standard.

Contents

1. Establishing the scope of the agreement
2. Defining the party wall
3. Defining the extent of the works to be carried out
4. Identifying the area of responsibility for each party
5. Determining who is responsible for the costs associated with the agreement
6. Understanding who will be responsible for obtaining permits
7. Identifying who will be paying for materials
8. Determining who will be responsible for paying for labour
9. Establishing a timeline for the agreement
10. Setting out a timeline for when the works will begin and end
11. Establishing milestones that need to be met
12. Clarifying rights and liabilities
13. Ensuring that the rights of all parties are clear
14. Determining the potential liabilities associated with the agreement
15. Determining dispute resolution
16. Outlining the process for resolving any disputes that may arise from the agreement
17. Identifying a third party mediator, if necessary
18. Establishing a signature process
19. Outlining the process for signing the agreement
20. Identifying any additional documents that may need to be signed
21. Obtaining the necessary permits
22. Understanding the process for obtaining the necessary permits
23. Determining the associated costs
24. Ensuring that the permits are obtained in a timely manner
25. Arranging for inspections
26. Scheduling inspections
27. Ensuring that the inspection process is completed in a timely manner
28. Documenting the agreement
29. Drafting the agreement in writing
30. Ensuring that all parties sign the agreement
31. Finalizing the agreement
32. Ensuring that all parties have a copy of the signed agreement
33. Identifying any additional steps that need to be taken to finalize the agreement

Get started

Establishing the scope of the agreement

• Determine the nature of the works that will be carried out and the duration of the works
• Agree on the exact location of the party wall and the works to be done
• Specify the areas of the property that will be affected by the works
• Set out in detail the works that will be done on the party wall and the materials to be used
• Agree on the access rights and responsibilities of both parties
• Set out in the agreement the rights of each party to inspect the works and ensure they are being carried out in accordance with the agreement
• Set out the insurance requirements of each party
• Create a schedule of works and timescales
• Agree on the costs and other financial arrangements
• Agree on a dispute resolution process
• Ensure that each party is aware of their legal obligations
• Check that all parties have signed the agreement
• When all parties have signed the agreement, it can be filed with the local council.

Defining the party wall

• Research the existing party wall and survey it to determine its exact boundaries
• Take photographs and make notes of the party wall and any potential issues
• Draw up a plan of the party wall and its location relative to the building
• Mark the boundaries of the party wall on the plan
• Obtain an agreement from both parties in regards to the exact boundaries of the party wall
• When both parties have agreed on the boundaries of the party wall, this step is complete and you can move on to the next step.

Defining the extent of the works to be carried out

• Agree on the scope of the works that will be carried out by the adjoining owner.
• Consult with an architect or surveyor to ensure the works comply with the Party Wall etc. Act 1996.
• Make sure that all involved parties are aware of the extent of the works.
• Check that the works do not contravene any building regulations or planning permission.
• When all parties are clear on the extent of the works, you can check this step off your list and move on to the next step.

Identifying the area of responsibility for each party

• Identify the boundaries of the works that are subject to the agreement
• Clearly define the area of responsibility for each party and document in the agreement
• Consider what is required to ensure that the works can be completed on each side of the wall
• Make sure to include any relevant information, such as access rights and maintenance, in the agreement
• Record any agreed-upon shared areas in the document
• Once all parties have been identified and the areas of responsibility have been clearly defined, you can move on to the next step.

Determining who is responsible for the costs associated with the agreement

• Review the agreement to determine who is responsible for the costs associated with the agreement
• Research local laws and regulations to determine what costs are allowed
• Determine who will be responsible for the costs associated with the agreement, and document it in the agreement
• When all costs associated with the agreement have been determined, and both parties agree, the step of determining who is responsible for the costs associated with the agreement can be checked off the list.

Understanding who will be responsible for obtaining permits

• Research local laws and regulations to determine who is responsible for obtaining permits for the agreement
• Check with the local building department or municipality to find out who needs to be the party responsible for obtaining permits
• Make sure the responsible party is aware of their responsibility and provide them with any information they may need to obtain the necessary permits
• Once the responsible party is identified and they agree to the terms, you can check this step off your list and move on to the next step.

Identifying who will be paying for materials

• Determine what materials will be needed for the project
• Work out if one party or both parties will be paying for the materials
• Make sure that the agreement clearly states who will be paying for the materials
• Assign a budget for the materials
• Review the agreement to make sure that the payment for materials is accurate

When you can check this off your list:
Once you have determined the materials needed, assigned a budget, and the agreement clearly states who is responsible for paying for the materials, you can check this off your list and move on to the next step.

Determining who will be responsible for paying for labour

• Discuss with the adjacent property owner who will be paying for the labour costs.
• Reach an agreement on who will be paying for the labour costs and document this in the Party Wall Agreement.
• Check with both property owners that they are happy with the agreement and that their names are listed correctly in the document.
• Once both parties are satisfied with the agreement, both owners should sign the document.
• Once both owners have signed the agreement, this step can be considered as completed.

Establishing a timeline for the agreement

• Contact the two property owners and arrange a mutually agreed upon timeline
• Set a date for the agreement to be drawn up
• Determine the duration of the works
• Agree on the start and end date of the works
• Finalize the timeline and document it in the party wall agreement
• Once the timeline is agreed upon and documented, you can move on to the next step.

Setting out a timeline for when the works will begin and end

• Agree to a start date for the works to begin and an end date for when they should be completed
• Establish what both parties will do to ensure work is completed on time
• Identify any necessary steps that need to be taken prior to the start date
• Create a timeline for the works with specific milestones the works should reach
• Agree on deadlines for when those milestones should be met
• Decide on how delays will be handled
• Establish a timeline for when the works will be inspected and approved
• Once the timeline is set, both parties can sign the agreement to officially set the timeline into motion
• You can check this step off your list once both parties have signed the agreement and the timeline is officially set.

Establishing milestones that need to be met

• Determine which milestones need to be included in the party wall agreement. Consider any deadlines for completion of the works, major milestones, and any other key milestones.
• Write down the milestones that need to be included in the agreement.
• Include in the agreement how each milestone will be measured and when it needs to be achieved.
• When all milestones have been established, double-check that the timeline for the works is still accurate and feasible.
• When all milestones have been established and the timeline has been double-checked, the step is complete and you can move on to the next step.

Clarifying rights and liabilities

• Understand what rights and liabilities each party has under the Party Wall Act 1996
• Identify potential claims or disputes between the parties and outline how these will be resolved
• Agree on the scope of the party wall agreement and what it will cover
• Draft the agreement in clear and unambiguous language
• When all parties are in agreement on the terms, sign off on the agreement
• You can check this step off your list and move on to the next step when the agreement has been signed by all parties.

Ensuring that the rights of all parties are clear

• Review the party wall agreement for accuracy and completeness, to ensure that the rights of all parties are clear.
• Ensure that the rights and obligations of each party are explicitly stated in the document, and all parties have reviewed and agreed to the terms, as any dispute regarding the agreement may result in costly and time-consuming legal proceedings.
• Assess any potential risks associated with the agreement, to ensure that all parties are adequately protected.
• Make sure that all parties have signed the agreement, and all necessary documents are in order.
• Once all the rights of the parties are clear and there is agreement on the terms, you can check this step off your list and move on to the next step.

Determining the potential liabilities associated with the agreement

• Analyze the potential risks associated with the agreement and identify potential liabilities.
• Consult a solicitor or lawyer to assess any potential legal liabilities and obligations of the parties involved.
• Create a clear outline of the liabilities of each party, and record this in the agreement.
• Check the agreement against applicable laws and regulations to ensure that it is compliant.
• When you are confident that the liabilities of each party have been fully outlined and recorded in the agreement, you can move on to the next step.

Determining dispute resolution

• Consult a professional to determine the best way to resolve any disputes that may arise from the agreement
• Consider whether arbitration, mediation or expert determination is the most suitable dispute resolution process for your agreement
• Develop a dispute resolution clause in the party wall agreement that outlines the process for resolving any disputes that may arise
• Evaluate the potential costs associated with the dispute resolution process
• Once a dispute resolution clause has been drafted and agreed upon, the party wall agreement is ready to be signed
• Check off this step and move on to the next step of outlining the process for resolving any disputes that may arise from the agreement

Outlining the process for resolving any disputes that may arise from the agreement

• Outline the process for resolving disputes, such as through arbitration, mediation, or litigation.
• Include the criteria needed to determine which process will be used to resolve the dispute.
• Include the timeframe for initiating the process and the steps that must be taken by the parties in order to resolve the dispute.
• Identify the potential outcomes of the process, such as an agreement or a decision made by a third party.
• Check to make sure that the dispute resolution process is clear, fair, and reasonable.
• Make sure that both parties have a copy of the completed dispute resolution provisions.
  Once you’ve outlined the process for resolving any disputes that may arise from the agreement, you can move onto the next step: Identifying a third party mediator, if necessary.

Identifying a third party mediator, if necessary

• Research local mediators and solicit proposals
• Review the credentials of the proposed mediator and receive references
• Contact the proposed mediator to discuss the dispute resolution process
• Negotiate the terms and fees of the mediator
• Sign the contract with the mediator

Once the contract has been signed with the mediator, this step can be checked off the list and the next step of establishing a signature process can be started.

Establishing a signature process

• Agree on the signature process for the party wall agreement: who will sign, when will they sign, and how will they sign
• Decide whether all parties must sign in person or if electronic signatures are acceptable
• Provide all parties with a copy of the party wall agreement
• Ensure all parties understand the agreement and the obligations they are signing up to
• When all parties have signed the agreement, you will have completed this step and can move onto the next step - outlining the process for signing the agreement.

Outlining the process for signing the agreement

• Review the Party Wall Agreement and determine who needs to sign it.
• Determine who will be the signatory.
• Contact the signatories and determine their availability to sign the agreement.
• Create a timeline for each signatory to sign the agreement.
• Ensure each signatory has a copy of the agreement before signing.
• Schedule a time for each signatory to sign the agreement.
• Upon completion of all signatures, obtain a signed copy of the agreement from each signatory.
• Once all signatures are obtained, the Party Wall Agreement is considered complete.

Identifying any additional documents that may need to be signed

• Check all applicable local laws and regulations to determine if any additional documents are required to be signed in addition to the party wall agreement, such as permits or waivers.
• Consult with a knowledgeable professional if you are unsure of the local laws and regulations.
• Once you have identified any additional documents that need to be signed, you can check this step off your list and move on to the next step.

Obtaining the necessary permits

• Contact the local planning authority to determine whether you need to obtain a party wall agreement permit.
• Submit the documentation and application form to the local planning authority.
• Apply for any other permits, such as a building permit, that may be required.
• Pay the fee associated with the permits.
• Await approval of the permits.
• Once all permits have been obtained and approved, you can move on to the next step.

Understanding the process for obtaining the necessary permits

• Contact your local Building Regulations department to find out what permits are required for a party wall agreement
• Research your local building regulations to see what other permits may be needed
• Complete any necessary forms for the permits
• Gather all evidence necessary for the application
• Submit your application for the permits
• Wait for approval from the Building Regulations department
• Once all permits have been approved, you can move on to determining the associated costs for the party wall agreement.

Determining the associated costs

• Obtain a cost estimate from a surveyor for the works proposed, including details of the proposed works and their associated costs
• Calculate the sum of the associated costs, including materials, labour, and any other associated costs
• Have the party wall agreement drafted by a solicitor that includes all the associated costs
• Check that the cost estimates are in line with the associated costs as outlined in the party wall agreement
• Once all costs have been established, check off this step and move on to ensuring that the permits are obtained in a timely manner.

Ensuring that the permits are obtained in a timely manner

• Check with your local government agency to determine what permits are required to complete the party wall agreement.
• Submit the necessary paperwork and fees to obtain the necessary permits.
• Follow up with the agency to ensure that the permits are issued in a timely manner.
• When you have received all of the necessary permits, you can move on to the next step.

Arranging for inspections

• Meet with the surveyor to discuss the plans and arrange for an inspection to be conducted.
• Ensure that all inspection fees and additional costs are paid in advance.
• Provide the surveyor with any necessary paperwork or documents that need to be reviewed before the inspection can be conducted.
• Schedule the inspection date with the surveyor and the other parties involved.

Once the inspection has been arranged, you can move on to the next step of scheduling inspections.

Scheduling inspections

• Contact the surveyors to find out the availability for inspection
• Establish a timeline for the inspection process and make sure all parties involved are aware of it
• Schedule a time for both surveyors to inspect the wall
• Agree on a specific date and time for the inspection to take place
• You’ll know this step is complete when the surveyors have inspected the party wall and the timeline for the inspection process has been agreed upon by all parties.

Ensuring that the inspection process is completed in a timely manner

• Check with both parties to ensure they are both available for the inspection by the agreed-upon date.
• Schedule the inspection and confirm it with both parties.
• Ensure that both parties have access to the property during the scheduled inspection.
• Follow up with both parties to ensure that the inspection was completed in a timely manner.
• When the inspection is completed and both parties are in agreement, you can check this off your list and move on to the next step.

Documenting the agreement

• Take detailed notes on the inspection findings
• Gather all of the relevant information, such as measurements, photographs, diagrams, and sketches
• Record any statements made by the neighbours, surveyors, and other involved parties
• Ensure all relevant details are accurately documented
• When you have documented as much detail as possible, you can move on to the next step
• Check off this step when you feel confident that you have documented all the necessary information

Drafting the agreement in writing

• Determine who is responsible for drafting the agreement - this could either be the party wall surveyor or the solicitors of each party
• Ensure that all parties agree to the terms and conditions of the agreement and that all relevant information is included in the agreement
• Once all parties have agreed to the terms and conditions of the agreement and all relevant information is included, the agreement can be signed by all parties
• Once the agreement has been signed by all parties, you can check this off your list and move on to the next step, which is ensuring that all parties sign the agreement.

Ensuring that all parties sign the agreement

• Notify both parties of the agreement and ask them to sign it
• Ensure that both parties sign the agreement
• Have each party keep a copy of the agreement
• Once all parties have signed, you can check this off your list and move on to the finalizing the agreement.

Finalizing the agreement

• Ensure that all parties have reviewed and signed the agreement.
• Ensure that the agreement has been notarized if required.
• Ensure that all parties have a copy of the signed agreement.
• Once all the above has been completed, the agreement is ready to be finalized.

How you’ll know when you can check this off your list and move on to the next step:

• You will know that you can check this off your list when you have ensured that all parties have reviewed, signed, and have a copy of the signed agreement. Additionally, if required, the agreement must have been notarized.

Ensuring that all parties have a copy of the signed agreement

• Make copies of the signed agreement and distribute to all parties involved
• Check with each party to make sure they have received their copy and verify that they have read and understand the agreement
• Once all parties have a copy and have read and understood the agreement, you can check this step off your list and move on to the next step.

Identifying any additional steps that need to be taken to finalize the agreement

• Consider the nature of the works being carried out and decide if a Party Wall Award is necessary.
• If a Party Wall Award is needed, check the local authority laws in the area where the works are being carried out and appoint a surveyor to prepare the Award.
• Ensure all parties have access to a copy of the Party Wall Agreement and the Award.
• Agree on a timeline for any works to be carried out and when the Agreement will be considered finalized.
• Ensure all parties understand their responsibilities under the Agreement and that they are legally bound to adhere to it.
• When all steps have been completed, the Agreement will be considered finalized and all parties can sign it.

FAQ

Q: What is the difference between a party wall agreement and a boundary wall agreement?

Asked by Rebecca on April 13th 2022.
A: A party wall agreement is an agreement between two adjacent landowners who share a common boundary wall. The agreement outlines the responsibilities of each landowner in terms of upkeep, maintenance, and repair of the boundary wall. A boundary wall agreement is an agreement between two adjacent landowners who share a common boundary line. This agreement outlines the responsibilities of each landowner in terms of maintenance, use, and repair of the boundary line.

Q: Are there any special requirements for party wall agreements in the UK compared to the USA?

Asked by Joshua on June 7th 2022.
A: Yes, in the UK, party wall agreements are governed by the Party Wall etc. Act 1996. This Act outlines rules for notices, awards, and dispute resolution for party walls in England and Wales. In the USA, there is no federal law governing party walls; instead, individual states have laws in place to govern them.

Q: Is there any specific advice I should take into account when drafting a party wall agreement?

Asked by Emma on August 30th 2022.
A: Yes, it’s important to ensure that you consult with all relevant parties and consider their interests when drafting a party wall agreement. In addition to this, you should ensure that you include all necessary details (such as boundaries, access rights, and shared responsibilities) in your agreement, as well as any additional clauses that may be relevant to your situation. Finally, you should make sure to include dispute resolution clauses in your agreement to ensure that any potential disputes can be resolved quickly and efficiently.

Q: Are there any legal requirements that must be fulfilled when drafting a party wall agreement?

Asked by Jacob on October 15th 2022.
A: Yes, there are a number of legal requirements that must be fulfilled when drafting a party wall agreement. This includes ensuring that all parties involved are aware of their rights and obligations under the agreement; ensuring that all necessary details are included; ensuring that all parties are legally represented (if necessary); ensuring that all necessary documents are signed; and ensuring that any disputes can be resolved quickly and efficiently through dispute resolution clauses included in the agreement.

Q: What happens if one of the parties involved fails to comply with their obligations under the party wall agreement?

Asked by Michael on December 23rd 2022.
A: If one of the parties involved fails to comply with their obligations under the party wall agreement then they may be held liable for damages caused as a result of their breach of contract or negligence. If a dispute arises then it can be resolved through mediation or arbitration (if included in the agreement). If this does not resolve the dispute then legal action may need to be taken.

Q: How long does it take for a party wall agreement to become legally binding?

Asked by Isabella on February 13th 2022.
A: It usually takes between 2-6 weeks for a party wall agreement to become legally binding once it has been signed by both parties involved. This depends on how quickly all necessary paperwork is completed and submitted to relevant authorities as well as how quickly any disputes are resolved (if they arise).

Q: How often should a party wall agreement be reviewed?

Asked by Matthew on April 5th 2022.
A: It is generally recommended that party wall agreements are reviewed every few years or whenever significant changes occur (such as changes in ownership or changes in legislation). This ensures that both parties remain aware of their rights and obligations under the agreement and can ensure that any disputes can be resolved quickly and efficiently if they arise.

Q: Are there any special considerations when dealing with international borders when drafting a party wall agreement?

Asked by Olivia on May 25th 2022.
A: Yes, there are certain considerations you should take into account when dealing with international borders when drafting your party wall agreement. These include understanding national laws and regulations applicable to both sides; understanding any cultural differences between countries; understanding any trade tariffs or restrictions which could impact construction projects; and understanding language barriers which could cause difficulties in communication between both sides of the border. Additionally, you should make sure to consult with both sides before signing an international border-crossing party wall agreement to ensure all relevant parties agree with its terms and conditions.

Q: What should I do if I have difficulty reaching an amicable solution with my neighbour regarding our shared boundary line?

Asked by Ethan on July 12th 2022.
A: If you find yourself having difficulty reaching an amicable solution with your neighbour regarding your shared boundary line then it may be beneficial to seek professional advice from an experienced property lawyer or surveyor who can help mediate discussions between both parties involved and advise on potential solutions which meet both sides’ needs. Additionally, if necessary you may also wish to consider alternative dispute resolution methods such as mediation or arbitration which could help resolve disagreements quickly and efficiently without having to resort to legal action (if provided for within your party wall agreement).

Q: Does my industry or sector have any special requirements for drafting a party wall agreement?

Asked by Abigail on August 22nd 2022.
A: Depending on your industry or sector there may be certain specific requirements you need to consider when drafting your party wall agreement which are not applicable in other industries/sectors due to different safety regulations or construction requirements etc. For example, if you operate within the construction industry then you may need additional clauses regarding health & safety regulations applicable on construction sites or other specific requirements applicable within this sector which wouldn’t necessarily apply elsewhere. Therefore it’s important to research any specific requirements applicable within your industry/sector before beginning work on your specific project/agreement so you can ensure all relevant requirements are met and included in your document accordingly.

Q: Are there any special considerations I should take into account when drafting a SaaS-based Party Wall Agreement?

Asked by Joseph on September 10th 2022.
A: Yes, there are certain considerations you should take into account when drafting a SaaS-based Party Wall Agreement which differ from those applicable for other Party Wall Agreements such as traditional brick-and-mortar businesses or technology firms etc… These include ensuring adequate security measures are in place for data stored within cloud-based systems; understanding how data is transferred across servers; understanding how data is collected from users; understanding how data will be stored securely; understanding how access will be granted securely; understanding how user accounts will be managed securely; understanding how user data will remain secure even after users terminate their accounts; and understanding how user data will remain secure even after termination of service contracts etc… Therefore it’s important to research these topics thoroughly before beginning work on your SaaS-based Party Wall Agreement so you can ensure all relevant considerations have been taken into account accordingly.

Example dispute

Lawsuits Involving Party Wall Agreements:

• A party wall agreement is a legal document that is entered into between two or more property owners that sets out the rights and responsibilities of each party with regard to building works on or near the boundary between two properties.
• A plaintiff may raise a lawsuit against a defendant if they believe that the defendant has breached their obligations under the party wall agreement.
• The plaintiff can seek damages or an injunction to prevent the defendant from continuing to breach the agreement.
• The plaintiff may also seek a declaration that the defendant is in breach of the agreement and may ask the court to order the defendant to remedy the breach.
• In order to win the lawsuit, the plaintiff must prove that the defendant has breached their obligations under the party wall agreement, and the extent of the breach.
• The plaintiff may also be entitled to compensation for any losses suffered as a result of the breach.
• The court will consider any relevant evidence, such as communications between the parties or surveyor’s reports, in order to determine whether the defendant is in breach of the agreement and the extent of the breach.
• If the defendant is found to be in breach of the agreement, the court may order the defendant to remedy the breach, provide compensation to the plaintiff, or both.

Templates available (free to use)

We don’t actually have any party wall agreement templates at this time. Let us know if you’d like us to open source some by emailing community@genieai.co

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