Let’s Refresh Some Terminology
First, let’s set a few things straight.
It’s important to know that the building owner in this context is the person who is carrying out the notifiable works under The Party Wall etc Act, while the person affected by the works is the adjoining owner.
For example, a building owner might submit a proposal; to build a single storey extension on their land. The excavations for the foundations of this extension may be within 3 metres of their neighbour’s property, and to a greater depth than its foundations. The neighbour is the one affected by the works, and so legally they are known as the ‘adjoining owner’. Theycould be a residential owner, the freeholder of the building, leaseholder or a tenant.
The Party Wall etc Act 1996
The Party Wall etc Act 1996 is designed to prevent or resolve disputes between neighbours about:
• Party walls
• Party structures
• Boundary walls
• Excavations near neighbouring buildings
Anyone wanting to carry out work in the categories above must give notice to the adjoining owners. The Act even applies to the Royal Family!
The rights under the Act are personal to the original parties, so the building owner who served notice and the adjoining owner who received it. They’re not attached to the land, they’re attached to the people. So even if one adjoining owner has no issues with their neighbour’s proposals, someone looking to purchase their property might have their own reasons to contest the works.
What Happens if the Building Owner Sells Before Starting Construction?
All of that means that if you’re buying a building owner’s property, you can’t rely on any party wall agreement made by the vendor, even if they consented to it. If you plan to carry out the works yourself, then it’s worth serving your own party wall notices. Assuming that you’re not modifying the original proposals from the building owner, it can be as simple as having a conversation with your new neighbour and building a relationship with them. Most of the time, they will consent to the notice again.
If you’re really keen to get work started as soon as possible, it is an option to serve notices before completion at the exchange of contract. This is because you’re considered the owner if you have the benefit of a contract for purchase.
Along the same lines, if an adjoining owner has objected to the work, (triggering the agreement of a party wall award), it would only be valid for the original parties, and the party wall process might well start all over again. Which is the last thing you want!
These scenarios are specific to changes of ownership that happen before the construction works actually begin. That’s mainly because it’s very unusual for a change of ownership of the building owner’s property to occur halfway through construction. But if you are in this situation, we recommend that you reach out to an experienced party wall surveyor for advice specific to your situation.
What Happens if the Adjoining Owner Sells Their Property?
Of course, sometimes it happens the other way around. If you’re the building owner and you know that the adjoining owner’s property is up for sale, then you need to serve a party wall notice on your neighbour up until the point that the buyer is under contract and legally owns the house.
If you haven’t started your notifiable works and a new buyer is already under contract, you will need to start the process again and serve a notice on them. If notifiable works are already complete, you won’t need to serve a notice, even if you haven’t finished the general building works yet.
If there is a dispute and you end up with a Party Wall Award, it’s generally accepted that the award transfers to any subsequent adjoining owners if the award is valid. But the Act isn’t entirely clear on this point, so we’ll always recommend speaking with a professional chartered surveyor.
My Neighbour Is Doing Construction, Will This Impact My Property Sale?
If your neighbour has notified you that they are planning building works, you might be a bit worried about what it means for your property, especially if you’re trying to sell it.
After all, you might have even found a buyer that’s excited to move in and the selling process is going well. And now you have to tell them that there might be a dispute to deal with. Or you may just be worried that the buyer will pull out of the sale as soon as you tell them about the noisy construction works are about to start next door.
In this situation, our advice is that honesty is the best policy. Make sure you’ve informed your solicitor about your neighbour’s proposed works so that they can advise you, and let your buyer’s solicitor know to advise them. Solicitors in general have a good understanding of the Party Wall Act, what it means for you as a vendor and your potential buyer, so they can put both of your minds at ease.
We would also suggest that you seek advice from an experienced party wall surveyor. This is so that you know you’re making the right decision on whether to consent or dissent to the party wall notices, and to check that the notices are valid.
And most importantly, as soon as a party wall notice has been served on you, reach out and have a conversation with the buyer. It may be that the buyer has dealt with party wall matters before, either from a previous neighbour doing works or doing work on their own properties in the past. They may even be hoping to extend your property once they buy it, and in that case will have to deal with party wall matters themselves.
If this is an issue that affects you, or you would like more information about changing ownership and party wall matters (whether you’re the owner or the adjoining owner), we are happy to help. Just get in touch with the team today by calling 023 8155 0051, or sending us an email. We look forward to hearing from you!
We also have a range of videos talking through various aspects of the Party Wall process. You can access them via our website or our YouTube channel.
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