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September | October 2017 19
Such agreements delineate the process for making changes
to the party wall, requiring agreement and consent from the
adjacent owner. For example, a Party Wall Agreement will not
inhibit an owner from nailing a picture to his internal portion
of the shared wall or the other owner hanging a painting on the
opposite side of the wall. However, a Party Wall Agreement
will address structural changes and alterations to the party wall,
which require the consent from the adjacent owner.
Once owners legally consent to the terms, Party Wall Agree-
ments should be recorded in the applicable land records. By
including the Party Wall Agreement in the applicable land
records, potential purchasers know about it and understand their
rights and obligations.
Establishing Ground Rules
This was the scenario for the recent transaction described above.
Through a title search and receipt of a commitment for title
insurance and the underlying exception documents, the buyers
and consulting attorney could review and understand the Party
Wall Agreement prior to closing. This group then could deter-
mine the best way to address the Party Wall Agreement, so the
lender was comfortable with the borrower and acquiring owner
taking on those rights and obligations.
Consenting to a Party Wall Agreement prior to possible dis-
putes benefits the owners. In this recent transaction, the attor-
neys requested an estoppel certificate by the adjacent owner that
confirmed no known defaults under the Party Wall Agreement
or possible claims relating to it at the time of closing.
Those involved in the deal understood the rights, the obliga-
tions, and the validity of the Party Wall Agreement.
Barbara Anne "B.A." Spignardo is a member of Shapiro,
Lifschitz & Schram, P.C.'s Real Estate and Business groups.
Contact her at spignardo@slslaw.com.
"Picture row houses and
commercial structures
sharing walls. Which owner
or owners can claim those
walls? Although party
walls may be quite
common, Party Wall
Agreements are unusual."
Polka
Dot
Images/Getty
Images
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