What to Do When Property Ownership Changes During Party Wall Matters

Occasionally, we come across situations where someone is in the middle of party wall proceedings, and then a change in property ownership occurs. This can leave people confused about what steps to take, especially when the adjoining owner is selling their property during this process. Unfortunately, the Party Wall Act doesn’t provide clear guidance on what to do in these cases. Let’s break down what happens when ownership changes during ongoing party wall matters.

First, Let’s Clarify the Key Terms

Understanding the terminology is essential for navigating these situations.

  • Building Owner: This is the person carrying out the proposed construction work under the Party Wall etc. Act. For instance, if someone is planning to build an extension or make other structural changes, they are the building owner.
  • Adjoining Owner: The person whose property is affected by the building work. This could be a neighbour, a tenant, or anyone whose property lies next to the one undergoing construction.

Under the Party Wall Act, certain types of construction require a formal notice to the adjoining owner, such as work on party walls, party structures, or excavations near a neighbouring property.

The Party Wall Act and Property Ownership

The Party Wall etc. Act 1996 was designed to prevent and resolve disputes over construction projects that affect party walls, structures, or nearby properties. Importantly, the rights and obligations under the Act are personal to the parties involved. This means that they don’t automatically transfer to new owners when the property changes hands. If, for example, an adjoining owner agrees to a proposed construction, the new owner of that property might have their own objections, which could lead to a new dispute.

What Happens If the Building Owner Sells the Property Before Work Begins?

When the building owner sells the property, the new owner cannot rely on any prior agreements made by the previous owner regarding party wall matters. If the new owner plans to carry out the same works, they will need to serve a new party wall notice on the adjoining owner. Even if the original adjoining owner agreed to the construction, the new buyer might have their own preferences or objections.

In such cases, it’s generally a good idea to serve party wall notices before the sale is completed. This can be done at the exchange of contracts, as the buyer is considered the legal owner at that point. This helps avoid delays or complications once the transaction is finalized.

If the adjoining owner has already objected to the works, triggering the need for a party wall award, the new owner will likely need to go through the process again. This means that the original party wall dispute might have to start from scratch.

If ownership changes after the construction work has already started, things get more complicated. The new owner will likely need to serve new notices for any ongoing work, and the party wall process may need to be revisited.

What Happens If the Adjoining Owner Sells Their Property?

If you’re the building owner and the adjoining owner is selling their property, you will need to serve a new party wall notice on the new owner once the sale is completed.

  • If the adjoining owner hasn’t raised objections and no party wall award has been issued, you can proceed with the works without any issues.
  • If the works are already underway, you won’t need to serve a new notice, though there may be practical complications to consider.

In the case of a dispute, the party wall award may transfer to any new owners, but this isn’t always guaranteed, and the Act doesn’t provide a clear directive on this point. To avoid any uncertainty, it’s always a good idea to consult a professional chartered surveyor for advice.

Will My Neighbour’s Construction Impact My Property Sale?

If you’re trying to sell your property and your neighbour has already served a party wall notice or is planning construction, you may be concerned about the impact on your sale.

Here’s what you can do:

  1. Be Transparent: Let your solicitor know about the ongoing party wall matters. They’ll be able to advise you on how this may affect the sale and help communicate with the buyer’s solicitor.
  2. Stay Calm: Buyers often appreciate honesty and transparency. If there’s construction work scheduled next door, it’s better for them to know upfront so they can make an informed decision.
  3. Consult a Surveyor: You may want to speak to a party wall surveyor for guidance. They can ensure the notices are valid, help you understand your options for consenting or dissenting, and address any concerns about potential damage or disruption.
  4. Talk to Your Buyer: If the buyer is familiar with the Party Wall Act or has dealt with similar issues before, they may not be concerned. In some cases, they may even intend to carry out their own construction work after purchasing the property and will need to address party wall matters themselves.

Conclusion

Changes in property ownership during party wall matters can be tricky, but with the right advice and preparation, you can ensure that things proceed smoothly. If you’re in the middle of a property transaction and dealing with party wall issues, it’s crucial to consult with both your solicitor and a professional surveyor. This will help ensure that your legal and construction matters are handled correctly, reducing the risk of delays, disputes, or complications down the line.