Under Section 10(1) of the Party Wall etc. Act 1996, when a dispute arises after a party wall notice is served, the Act provides two options for appointing surveyors:
- Option (a): Both parties agree on appointing a single surveyor, known as the agreed surveyor.
- Option (b): Each party appoints their own surveyor, and those two surveyors appoint a third surveyor to resolve the dispute, collectively known as the three surveyors.
Why Is the Agreed Surveyor Option Important?
Most building owners, when serving notice, already have a surveyor lined up. If the adjoining owner consents to use this surveyor as the agreed surveyor, it can significantly reduce costs — theoretically cutting party wall surveyor fees by about half.
What If the Adjoining Owner Refuses an Agreed Surveyor?
Traditionally, it has been considered the adjoining owner’s choice whether to accept an agreed surveyor or to appoint their own separate surveyor. This means the building owner could end up paying for two surveyors, sometimes at a cost greater than the proposed works themselves.
Recent Legal Development
A recent County Court appeal has cast doubt on whether it is reasonable for an adjoining owner to refuse to accept an agreed surveyor. In this case:
- The building owners wanted to build a loft dormer extension.
- The adjoining owners had done similar work previously without formal party wall procedures.
- Upon refusal of consent, the adjoining owners also refused to accept the building owner’s surveyor as the agreed surveyor.
- They appointed their own surveyor at a high hourly rate and insisted on the two-surveyor route.
- The court found the adjoining owners’ refusal unreasonable, resulting in an avoidable increase in costs.
- The court ordered the adjoining owners to pay for the unnecessary surveyor’s fees incurred by the building owner.
What Does This Mean in Practice?
- Adjoining owners who unreasonably refuse to accept an agreed surveyor may be liable to pay the additional costs caused by their refusal.
- Building owners and their surveyors should inform adjoining owners of this precedent if they resist using the proposed agreed surveyor.
- While this decision is persuasive and not binding nationwide, it signals a shift towards encouraging the use of agreed surveyors to keep costs down and avoid unnecessary disputes.
Final Advice
If you are an adjoining owner considering refusing an agreed surveyor, be aware that such refusal might be judged unreasonable and financially costly. If you are a building owner, insist on your surveyor acting as agreed surveyor when possible, and advise your neighbours of the potential cost implications of refusal.