Property owners in England & Wales wishing to undertake development works close to the boundary of adjoining property, are required to follow a statutory process under the Party Wall etc. Act 1996 (Act) before starting any works. A failure to comply with the Act, can delay projects and give rise to claims for compensation. Non-compliance can be costly, so, it is important to understand the key duties placed on parties prior to carrying out certain works. These are our top 5 tips for landowners and developers:
- Check whether the statutory procedure applies to your situation. For example, check your property title information – there may be specific provisions about which boundary features are to be treated as party walls. Prior notice is required in various circumstances, including works cutting into a party (shared) wall, excavating foundations close to a structure, demolishing and rebuilding party walls, underpinning and others. The purpose of the notice procedure in the Act is to provide a mechanism to avoid or minimise disputes, or resolve them in order for works to proceed.
- Seek early specialist advice on whether and how the statutory process applies to your intended development – a specialist party wall surveyor may also be needed.
- Identify the correct recipients for any notices and communicate with them early about your plans. A building owner who fails to comply with the Act, may be required to prove that any damage which occurs to an adjoining building was not caused by their works – therefore flipping the usual position by shifting the burden of proving a claim from the adjoining owner. A schedule of condition of adjoining buildings prior to works commencing is, therefore, essential.
- Ensure all required statutory notices are served on all relevant parties in good time – the Act generally requires notice to be served 2 months prior to starting works – and ensure the full procedure is completed. Failure to comply with the procedure prior to development may result in delays to the planned development, which could mean increased costs of labour, materials and financing.
- Keep a detailed audit trail of all notes of meetings and communications. If the development works cause damage, or a neighbouring owner disputes the procedure you have followed, the dispute resolution mechanism under the Act is likely to be triggered. The process can become protracted, so a readily available detailed history of events will be critical in preparing your case.
Failure to comply with the Act can have significant and costly consequences, including claims for compensation for trespass or nuisance, or even an injunction requiring developers to stop works.
If you are a developer or landowner involved in redevelopment close to adjoining land or property, or you have any concerns or questions about how the statutory requirements under the Party Wall etc. Act 1996 may impact you or your business, please do not hesitate to get in touch with our Real Estate Disputes team or your usual Brodies' contact.
