No Party Wall Agreement when selling house

Selling a house can be a complicated and stressful process, with numerous legal considerations to navigate. 

One such potential hurdle is the absence of a party wall agreement, a legal document crucial for any construction work affecting shared walls between properties. While lacking this agreement can raise concerns for buyers and potentially hinder your sale, it’s not an insurmountable obstacle. 

This guide aims to provide you with an understanding of party wall agreements, their significance in house sales, and how you can successfully sell your house even without one. Whether you’re a homeowner considering renovations or currently in the process of selling, understanding the ins & outs of party wall agreements is essential.

What is a party wall agreement?

A party wall is a shared structure that separates adjoining properties in England and Wales. It can  be a wall that forms part of a building, such as those found in terraced or semi-detached houses, or a garden wall built along a boundary line (excluding wooden fences). 

Additionally, walls on one owner’s land used by multiple owners to separate their buildings, as well as floors or other structures dividing buildings with different owners (e.g. flats), are also considered party walls.

If you plan to carry out any building work near or on a party wall, you must inform your neighbours. This is a legal requirement under the Party Wall Act 1996. 

A party wall agreement is a formal document that outlines the details of the proposed work and demonstrates your neighbours consent. This agreement, drawn up after serving a party wall notice, should include:

• A detailed description of the planned work.

• Agreed-upon working hours and access arrangements.

• A schedule of conduction documenting the state of the adjoining properties before work commences.

The schedule of conditions serves as a record in case of future disputes regarding the impact of the building work. Remember a party wall agreement is distinct from planning permission or building regulations approval. 

How much does a party wall agreement cost?

The cost of a party wall agreement can vary depending on several factors including the complexity of the project, the number of adjoining properties, the number of surveyors and the surveyors fees. 

Straightforward projects like minor alterations may cost between £800 to £1,500 per adjoining property owner. More extensive works like extensions or renovations could escalate costs to £2,000 to £3,000 or more. 

Each additional neighbour involved increases the complexity and cost, and if each party appoints their own surveyor, costs will naturally increase. 

The typical costs involved in a party wall agreement come from drafting and serving the party wall notice, the schedule of condition (a detailed documentation of the adjoining property’s condition), the party wall award (the final agreement detailing the work, timelines and responsibilities, and the surveyors fees (often charged hourly). 

Generally, each property owner is responsible for their surveyors fees. However, the property owner undertaking the work may offer to cover the neighbours surveyor costs as a gesture of goodwill. 

Do I need a solicitor for a party wall agreement?

In most cases, you don't need a solicitor for a party wall agreement. The Party Wall Act 1996 is designed to enable homeowners to handle the process themselves, primarily with the assistance of a party wall surveyors.

However, there are some situations where you may want to consider seeking legal advice from a solicitor or conveyancer:

• Complicated projects: If your building work is extensive or complicated, a solicitor can help you understand the legal implications and ensure your rights are protected.

• Disputes: If you and your neighbour cannot agree on the terms of the party wall agreement, or if there is a dispute during or after the works, a solicitor can advise you on your options and represent you in any legal proceedings.

• Uncertainty: If you’re unsure about any aspect of the Party Wall Act or the agreement process, a solicitor can provide clarification and guidance. 

As mentioned before, if the work is straightforward and your neighbour agrees to it, the process can often be handled by the surveyors alone. And, if you and your neighbour agree to use a single ‘Agreed Surveyor’, they can often manage the entire process without the need for legal involvement. 

Ultimately, deciding whether to involve a solicitor is a personal choice. Consider the complexity of your project and your comfort level with the legal aspects before making a decision. If you are unsure, it’s always a good idea to reach out to a solicitor to ask for their honest opinion. 

How much does a party wall solicitor cost?

While party wall surveyors typically charge an hourly rate (usually between £90 and £450), solicitor’s fees for party wall matters can vary widely depending on several factors including the complexity of the case, the experience and location of the solicitor and the length of involvement. 

It’s always difficult to give an exact figure for solicitor fees, but you can expect to pay anywhere from £150 to £250 per hour for their services. Some solicitors may offer fixed fees for specific tasks, such as reviewing a party wall agreement. 

However, a party wall dispute is at the very least going to cost £5,000 to engage in correspondence or litigation. If the case goes to court, it will cost even more.

What is the Party Wall Act 1996?

The Party Wall Act 1996 is a piece of legislation in England and Wales that provides a framework for preventing and resolving disputes relating to party walls, party structures, boundary walls and excavations near neighbouring buildings.

The Act sets out the procedures that must be followed when a building owner intends to carry out work that might affect a party wall or a neighbour's property. This includes:

• Notifying adjoining owners: Building owners must give written notice to their neighbours detailing the proposed work.

• Party Wall Agreements: If both parties agree to the work, a Party Wall Agreement can be drawn up.

• Party Wall Awards: If the parties cannot agree, a Party Wall Surveyor(s) will be appointed to draw up a Party Wall Award, which sets out the rights and responsibilities of both parties and how the work should proceed. 

The Act covers various types of work including building on or at the boundary of two properties, working on an existing party wall or party structure, and excavating near a neighbouring building. 

The Party Wall Act aims to protect the interests of both building owners and adjoining owners. By providing a clear process for resolving disputes and preventing unnecessary delays and costs.

Is a party wall act notice a legal requirement?

Yes, serving a party wall notice is a legal requirement under the Party Wall Act 1996 in England and Wales if you are planning specific types of work that may affect a party wall or boundary. This includes work like:

• Building on or at the boundary of two properties.

• Working on an existing party wall or party structure (e.g. thickening it, inserting a damp proof course, cutting into it, etc). 

• Excavating within 3 to 6 metres of a neighbouring building (depending on the depth of the foundations).

• Building an extension.

• Constructing a new building.

• Loft conversion.

• Underpinning and damp proof course.

The notice must be served in writing and include details of the proposed work and the date it is expected to start. Failing to serve a party wall notice when required can lead to legal disputes and potentially costly delays to your project. Your neighbour could seek an injunction to stop the work and you may be liable for their legal costs. 

What are the special foundations of the Party Wall etc Act 1996?

The Party Wall Act 1996 defines special foundations as those “in which an assemblage of beams or rods is employed for the purpose of distributing any load.” In simpler terms, this refers to reinforced concrete foundations or any foundation using steel reinforcements. 

Section 7(4) of the Act states that a building owner cannot place special foundations on an adjoining owner’s land without their prior written consent. This means that if your construction project requires special foundations that extend onto your neighbours land, you must obtain their explicit permission before proceeding.

The reason behind this distinction stems from the potential impact of special foundations on neighbouring properties. They are often used for larger or more complex structures and may require deeper excavations, potentially affecting the stability of adjacent buildings. 

If your project needs special foundations extending onto your neighbours land, you must:

1. Inform them through a Party Wall Notice, specifically mentioning the use of special foundations.

2. Obtain their written consent before commencing any work involving these foundations. 

Failure to do so could lead to legal disputes and delays in your project. If you are unsure whether your project requires special foundations or need guidance on navigating the Party Wall Act, it’s advisable to consult with a party wall surveyor.

3 Types of party wall notices

There are three different types of notices depending on the specific work being done:

If your project involves different types of work, you may need to serve multiple notices. For example, if you’re extending your property and this involves excavating near your neighbours house, you will need both a Party Structure Notice and a Notice of Adjacent Excavation. 

What is the notice period for the party wall act?

While Party Wall Notices often end up at the bottom of a building owner’s to-do list, prioritising them early can save you significant time and avoid project delays. Why? When neighbours dissent and appoint a surveyor, they may have numerous questions about your plans. These need answers before work can proceed.

Engaging a surveyor takes time. They may be busy with other projects, unavailable due to holidays or simply require time to thoroughly assess your proposals. Hence, once your design details are finalised, serve your notices promptly. 

For excavation or new boundary walls (Party Structure Notice or Line of Junction Notice), you should provide a minimum of one months’ notice. For work on existing party structures (Notice of Adjacent Excavation), you should provide a minimum of two months’ notice. 

While your neighbour can consent to an earlier start in writing, don’t rely on verbal agreements. To be safe, serve your notice at least one to two months before your planned start date. 

Does it have to be a 14 day notice?

After serving the notice, your neighbour has 14 days to respond. If no response is received, a reminder notice grants them an additional 10 days. If they remain unresponsive, you’ll need to appoint a surveyor on their behalf, which can further delay your project.

Do you need indemnity insurance when selling a house?

Indemnity insurance is not a legal requirement when selling a house in the UK, but it can be beneficial in certain situations. It provides financial protection against potential legal claims and liabilities related to the property’s title or past actions. Here is when indemnity insurance is often considered:

Lack of building regulations approval:

• If past alterations or extensions were done without property approval, indemnity insurance can protect against potential enforcement action or the need for costly rectifications. 

Breach of Covenants:

• If there are restrictive covenants on the property and a breach has occurred (e.g. building a structure not permitted), indemnity insurance can cover the legal costs and potential damages.

Missing planning permission:

• If planning permission for past work cannot be found, indemnity insurance can protect against potential issues arising from this lack of documentation. 

Chancel repair liability:

• This unique liability relates to the cost of repairing a local church. While rare, it can be expensive, and indemnity insurance can provide peace of mind. 

Access issues: 

• If there are concerns about the property’s access rights or disputes with neighbours, indemnity insurance can cover legal costs associated with resolving these issues.

Usually the seller pays for the indemnity insurance, as they are the party selling a property that potentially has issues. However, in some cases, the buyer and seller may agree to split the cost in return for a lower house price. 

What is the Party Wall Act indemnity policy?

A Party Wall Act indemnity policy, also known as Party Wall insurance, is a type of legal indemnity insurance designed to protect property owners in situations where previous work affecting a party wall was not carried out in full compliance with the Party Wall Act 1996. 

This can happen if the necessary permissions from neighbours were not obtained or if the relevant documentation is missing. The Party Wall Act indemnity policy usually covers:

• Reduction in property value: If the lack of compliance or documentation affects the property’s market value, the insurance can compensate for the loss. 

• Legal costs and expenses: This includes costs related to resolving disputes with neighbours, such as legal fees and surveyor costs. 

The Party Wall insurance is usually relevant for sellers of properties where there is a history of work done on or near a party wall without full compliance with the Act. It can be a helpful tool to facilitate the sale of a property by addressing potential legal and financial risks. It’s also worth noting that some mortgage lenders may require this insurance as a condition for approving a mortgage. 

Is indemnity insurance a legal requirement?

In the UK, indemnity insurance is not a legal requirement in most cases. However, there are some situations where it might be required or strongly recommended:

Therefore, while indemnity insurance is not a legal requirement, it’s often used to manage risk and provide reassurance in various scenarios.

What happens if you don’t get a party wall agreement?

If you and your neighbour cannot agree on the terms of a party wall project, the situation is considered a dispute under the Party Wall Act 1996. This doesn’t mean the project is automatically cancelled, but the process changes. Both parties must appoint a surveyor (or agree on a single “Agreed Surveyor”) who will assess the situation impartially. 

The surveyor(s) will then prepare a Party Wall Award. This legally binding document outlines the specifics of the work including how and when it will be done, necessary protections for the neighbours property and the financial responsibilities of each party. This Award ensures that the project can proceed while safeguarding both parties’ interests.

If you start work without following the property procedures or obtaining a Party Wall Award in a dispute situation, your neighbour has legal recourse. They can apply for an injunction to temporarily halt your project, which can be costly and time-consuming.

If your work causes damage to their property, they can also sue you for compensation. Additionally they may report you to the local council, potentially leading to enforcement action, alterations or even demolition of the unauthorised work. 

Which is why reaching a party wall agreement is always the preferable route. It avoids costly delays caused by disputes and potential legal battles. It also helps maintain a positive relationship with your neighbours. 

What can I do if my neighbour starts work without a party wall agreement?

If your neighbour begins work covered by the Party Wall Act 1996 without serving you a notice or obtaining a party wall agreement, you can take the following steps:

1. Contact your neighbour

Try talking to your neighbour first. Explain your concerns about the lack of agreement and the potential risks to your property like structural damage, damage to shared structures, noise, or loss of access. They may be unaware of their legal obligations or willing to pause the work to address the issues. 

2. Seek legal advice

If discussions with your neighbour fail, consult a solicitor or conveyancer specialising in property law or litigation. They can advise you on your rights and options under the Party Wall Act.

3. Apply for an injunction

Your solicitor can help you apply for an injunction from the court to stop the work until a party wall agreement is in place or a Party Wall Award is issued. This is a legal remedy to protect your property from potential damage. 

4. Consider mediation

If possible, try to resolve the dispute amicably through mediation. This can be a faster and less costly alternative to court proceedings. 

5. Serve a counter-notice

If you received a late or incomplete party wall notice, you can serve a counter-notice within 14 days of receiving it. This can trigger the dispute resolution process, leading to the appointment of surveyors and a Party Wall Award. 

6. Document everything

Keep records of all communication with your neighbour, photos or videos of the work being carried out, any evidence of damage to your property. This documentation can be vital if legal action becomes necessary. 

Time is of the essence. If your neighbour has already started the work, seeking legal advice and applying for an injunction promptly can prevent further unauthorised work and potential damage. The Party Wall Act provides you with rights as an adjoining owner, and you should not hesitate to assert them to protect your property.

Can you have a verbal party wall agreement?

While a verbal agreement might seem sufficient if you have a good relationship with your neighbour, it is not legally recognised under the Party Wall Act 1996. The Act requires a written Party Wall Agreement or Award to formalise any consent or decisions regarding work affecting a party wall. 

Here’s why a verbal agreement isn’t enough:

• No legal protection: A verbal agreement offers no legal protection to either party. If a dispute arises later, there’s no documented evidence of what was agreed upon, making it difficult to resolve.

• Lack of clarity: Verbal agreements can be vague, and lack the specific details necessary to ensure both parties understand their rights and responsibilities. 

• Misunderstandings: Even with good intentions, misunderstandings can occur in verbal communication, leading to disagreements and potential legal issues down the road. 

Therefore, even if your neighbour verbally agrees to your proposed work, it's important to follow the formal process outlined in the Party Wall Act. 

Can I write off my own party wall agreement?

While technically possible to draft your own party wall agreement, it is not recommended. To be legally valid under the Party Wall Act 1996, the agreement must adhere to specific requirements and contain precise details. Errors in drafting could render the agreement invalid, leaving you exposed to potential legal challenges. 

In situations where a dispute arises, the Act prohibits property owners from acting as their own Party Wall Surveyors. This ensures impartiality and a fair resolution process. Party wall matters can become complex, especially when disagreements occur. A qualified surveyor possesses the experience and expertise to interpret the Act, assess risks, and mediate conflicts to achieve an equitable outcome for all parties involved. 

There are limited situations where you might draft your own agreement. If your neighbour provides a written consent for the proposed work and waives their right to appoint a surveyor, you can create a simple agreement outlining the work and agreed-upon terms. However, this is only advisable for minor work with minimal risk of damage. 

For complex projects or those involving significant risks, it’s strongly recommended to engage a Party Wall Surveyor. They will ensure the agreement is legally sound, protects the interests of both parties, and minimises the risk of future disputes. 

Can a party wall act be done retrospectively?

Technically the Party Wall act 1996 itself does not provide for retrospective notices or awards as it is designed to be followed before work commences, not after. However, there are some situations to consider:

Can I sell my house without a party wall agreement?

While it’s not a legal requirement to have a party wall agreement to sell your house, it can certainly cause delays and complications, especially if your buyer is part of a chain. This is because the lack of an agreement, particularly if construction work has been done on or near the party wall, may raise concerns for potential buyers and their mortgage lenders.

It’s important to be upfront and transparent about the lack of a party wall agreement when advertising your property. Mention it in the property description to set clear expectations from the start. This way, you’ll attract buyers who are genuinely interested in the property despite the potential complications. 

If a buyer’s solicitor discovers the absence of a party wall agreement during conveyancing, it could lead to delays as they investigate potential risks and liabilities. This could result in renegotiations or even cause the sale to fall through.

Ideally, you should obtain a party wall agreement before commencing any work that could affect a party wall. This proactive approach ensures compliance with the Party Wall Act 1996 and provides peace of mind for potential buyers.

If you have a party wall agreement, ensure it’s up-to-date and readily available for potential buyers. This will help streamline the conveyancing process and avoid unnecessary delays. In cases where obtaining an agreement isn’t feasible, consider party wall indemnity insurance to protect against potential future claims from neighbours. This can offer reassurance to buyers and help a smoother house sale. 

Will your house price be affected if you don't have a party wall agreement?

When selling a house where construction has been done on or near a party wall, the absence of a party wall agreement can significantly impact its value and appeal to buyers. This is because the Party Wall Act 1996 mandates obtaining neighbourly consent for specific works, such as excavations and extensions. Failing to secure this agreement raises concerns for potential buyers regarding legal compliance and potential future disputes.

These concerns often lead to a perceived devaluation of the property. Buyers may worry about unforeseen structural issues or unresolved conflicts with neighbours resulting in lower offers, extended time on the market, or even difficulty securing a sale altogether.

Moreover, the absence of a party wall agreement raises questions about the construction process itself. Did qualified surveyors assess the potential impact on both your property and your neighbours? Were property risk assessments conducted? Without this documentation, buyers may fear hidden structural damage or potential liabilities, further diminishing their confidence in the property. 

In essence, a missing party wall agreement signals a lack of due diligence and transparency, creating uncertainty and risk for potential buyers. This negatively impacts the property’s perceived value and can significantly hinder its saleability. 

Therefore, it is strongly advised to obtain party wall agreements for relevant work, even retrospectively if possible. This demonstrates a commitment to legal compliance, protects both parties’ interests, and reassures potential buyers about the property’s condition and future stability. 

Is it hard to sell a house without a party wall agreement?

Selling a house without a party wall agreement can be more challenging than selling one with the property documentation in place. While it’s not impossible, it presents certain difficulties:

Selling a house without a party wall agreement can present many challenges due to the concerns it raises for traditional buyers who rely on mortgages and legal processes. Cash house buyers, on the other hand, can offer a great solution.

Here at The Property Buying Company, we can move quickly and complete deals without the need for mortgage approvals, providing you with a faster and more certain sale. This may be beneficial for you if you are facing urgent circumstances like financial difficulties or relocation. Moreover, the risk of your sale falling through is dramatically minimised, as we have the cash funds readily available to purchase your home. 

We are chain free buyers, which further streamlines your selling process by avoiding delays caused by interconnected transactions. Our flexibility in accepting properties with potential issues, like missing party wall agreements, can provide you the perfect opportunity. 

Additionally, we will cover all your fees when selling your house, including solicitor fees. We also don't have any fees for using our service, and we can help you sell in as little as 7 days if needed. 

In conclusion, for sellers without a party wall agreement, opting to sell your home with us, has numerous advantages. While your sale price may be slightly lower, our speed, certainty, flexibility and confidentiality can outweigh this, especially if you need a fast and secure sale.

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