Selling a house with no party wall agreement

Selling a house can be a demanding task. You might not be aware of the legal precautions you need to take before selling, for example, a party wall agreement, and without one, it could potentially make the process of selling even more difficult.

However, don’t fret, there are many ways you can have a successful sale, even without a party wall agreement. As much as it might seem like a hurdle, there are many things to focus on to get your house on the market, and selling!

What is a party wall agreement?

A party wall agreement is a legal agreement between two adjacent property owners who share a common wall, commonly referred to as a party wall. The purpose of this agreement is to establish the rights and responsibilities of each property owner with regard to the party wall.

The Party Wall Act 1996

The party wall agreement is a legal requirement under the Party Wall etc. Act 1996 to help resolve disputes between owners of neighbouring properties. The Party Wall Act requires anyone intending to carry out work to give adjoining owners a party wall notice of their intention.

The Party Wall Act also states to conduct the work in a way that causes minimal inconvenience to the neighbours and provide temporary protection to adjacent properties where necessary.

If damage is caused due to the works carried out by a building owner, they must be responsible for payment if the adjoining owner requests it.

For more information regarding the Party Wall etc. Act 1996. have a look at GOV.UK.

What counts as an adjoining owner?

An adjoining owner is anyone who is an owner of land, buildings or rooms adjoining the building owner's premise, this may also include the local authority. Essentially, this means two adjoining owners whose property share a common ground, such as a party wall.

What does the agreement outline?

The agreement typically outlines details of the construction or repair work that is being carried out on the party wall, as well as the time frame for the work to be completed.

A party wall is typically required when one party intends to carry out construction work that involves activities such as loft conversions, the insertion of damp-proof courses, and the excavation of new foundations.

The excavation usually involves removing earth, rock and other materials from a site, to create a cavity or hole in the ground. This is often necessary for construction projects and can cause damage to the party wall.

Therefore, it's important to set a party wall agreement to prevent any potential liability for damage to the party wall or either property.

The agreement helps to ensure the work is carried out in a manner that is fair and reasonable to both property owners, and that any disputes are quickly resolved.

What does the agreement involve?

When it comes to a party wall agreement, there are typically many important details and provisions to consider.

These include:

• Names and addresses of the property owners involved.

• A thorough description of the party wall itself.

• Rights and responsibilities of each property owner concerning the wall in question.

Once an agreement has been approved by the adjoining owner, a legal document known as the party wall award is created. This document includes details of what work should happen, when it will be carried out, and who will pay (this usually covers the surveyor's fees).

Is having a party wall agreement a legal requirement?

No, it’s not a legal requirement! However, there are certain situations in which party wall agreements are required by law.

These situations are:

1. Building an extension
2. Works to party structures
3. When a new building is being constructed
4. Excavation work
5. Loft conversion
6. Underpinning
7. Damp proof course

When you decide to get work done on your property, it’s essential that you make your party wall neighbour aware. The notice will allow your neighbour to agree to the proposed work, and potentially appoint a surveyor to act on their behalf.

Selling a house without a party wall agreement

You can sell your home without a party wall agreement, however, it's important to note that this may cause delays in the sale process.

If there is no agreement in place, and building work has been carried out on the party wall, potential buyers may be hesitant to purchase the property. This may be due to concerns about possible disputes or liabilities.

What's more, if the buyer's solicitor raises concerns about the lack of a party wall agreement during the conveyancing process, this could lead to delays, or even cause the sale to fall through.

To avoid these issues, it's recommended to obtain a party wall agreement before beginning any work that could affect the party wall. It's also essential to ensure the agreement is properly documented and maintained.

This can help to provide clarity and reassurance to potential buyers, making the sale process smoother and less stressful for all parties involved.

How to ensure a smooth sale

First and foremost, it’s crucial to be upfront about the situation with anyone interested in your property. Therefore, make it clear that no party wall agreement exists, and provide them with any information you have about the work carried out on the party wall.

Selling tips for a successful sale:

1. Obtain a surveyor's report: Use a qualified surveyor to carry out the assessment of the party wall and provide a report that can be shared with potential buyers.

2. Consider hiring a party wall surveyor: Party wall surveyors help to resolve differences between neighbours when building works to a party structure are presented. This is especially important If your neighbour disputes any party wall notices.

3. Work with a knowledgeable solicitor: Ensure your solicitor is aware of the situation and can provide advice and guidance on any possible legal issues or liabilities that may arise.

4. Consider obtaining a party wall agreement: If it’s feasible, it might be in your best interest to obtain one before completing the sale. This can help provide clarity and reassurance to anyone interested in buying and may make the sale process smoother and quicker.

5. Price the property accordingly: Given the potential risks and uncertainties associated with not having a party wall agreement, it might be helpful to price the property slightly lower than usual. This can help to make the property more attractive to buyers, as well as increase the chances of a successful sale.

6. Emphasise the benefits of the property: Highlight the positive features of your home that make it attractive to buyers. For example, its location, size and condition, as well as a modern kitchen and bathrooms, well-maintained gardens and an attic or an extension.

7. Keep the property well maintained and updated: If the property has been kept up to date and maintained, this will help to offset any concerns buyers may have about the lack of a party wall agreement.

8. Provide evidence of the quality of work: If building work has been carried out on the party wall, provide evidence that the work has been carried out to a high standard, and that there are no risks to be concerned about. You can provide buyers with photographs, testimonials from the builders, and any relevant certificates.

9. Be willing to negotiate: If buyers show concern regarding the lack of a party wall agreement, be willing to negotiate on the price of the property.

10. Work with an experienced estate agent: An experienced estate agent can provide guidance, and support throughout the sale process. They will ensure your home is marketed to the highest standards, as well as highlight its best features.

What to look for in your estate agent

First and foremost, it's vital to ensure they have the relevant experience in selling similar properties to yours. This includes the location, size, price range and also the lack of a party wall agreement.

They should be able to offer you advice on pricing, marketing and negotiations, as well as provide insights and strategies that can help you make the sale process smoother and victorious.

What three things make the best estate agent?

• Most experience in selling properties like yours
• The speed at selling properties in your area
• Most likely to achieve your asking price

Having a great and experienced agent is going to help you the most in having a successful sale. Have a look at our Free GetAgent Comparison Tool which will rank top agents to find the one that suits you best!

Does having no party wall agreement affect the value of your home?

Because of the risks included in work carried out on party walls, without an agreement potential buyers may feel wary about purchasing your home.

Under the Party Wall etc. Act 1996, if you share a boundary or party wall with a neighbouring property and plan to carry out specific types of work (excavation, building an extension etc) you are therefore required to serve notice to your neighbours. This is to obtain their agreement before commencing work.

If you fail to do so, your neighbours can take legal action and stop the work, seeking compensation for any damage caused. This is why it's imperative you think about the disadvantages of not having a party wall agreement.

This can negatively impact your house value, as well as having potential buyers show concern when it comes to buying your property. The value of your home can also decrease because of the lack of a party wall agreement, and you may have to lower your asking price to ensure a sale.

It's difficult to specifically estimate how much your home will be affected as this will depend on a variety of factors.

These include:

1. The type of work that requires party wall agreements

2. The extent of the works

3. The perceived risk on your neighbour's property

If you're planning on carrying out a significant construction project such as an extension and you don't plan on obtaining an agreement, there's a chance your house value could largely decline.

It's also worth noting that the lack of a party wall agreement could lower the saleability of your home. As potential buyers and their solicitors may further inspect the property's legal documents, including any party wall agreements.

If you're planning to sell your home, not having a party wall agreement in place could make it more difficult to attract buyers or secure a mortgage.

In general, it might be best to obtain a party wall agreement, especially if you are planning construction work that requires one.

If you're worried about your house value declining, have a look at our free GetAgent Online House Valuation tool. This will help you find out the value of your home, and so any concerns you have with the price, you can work towards bringing it back up.

How much does a party wall surveyor cost?

The cost of a party wall surveyor depends on a range of factors, such as the location, the complexity of the project and the specific services required.

Generally speaking, the cost can range from a few hundred pounds to thousands. Some party wall surveyors charge an hourly rate and others a fixed fee.

The average rate found in 2022 for party wall surveyors differs with the type of project.

For example:

• Party wall surveyor (per hour): £200
• Party wall award: £1,000

For the type of project:

• Loft conversion: £1,575
• Extension: £2,025
• New build: £2,475
• Basement: £3,375

Do I need indemnity insurance to sell my house without a party wall agreement?

Indemnity insurance is not a legal requirement for selling a house without a party wall agreement. However, it's recommended as a precautionary measure to protect the seller against any possible disputes that may arise.

If there's no party wall agreement in place, obtaining indemnity insurance will help protect you from any legal claims. As indemnity insurance policies provide coverage for any financial losses or legal costs sustained as a result of a dispute over a party wall.

How much does indemnity insurance cost?

The cost of indemnity insurance depends on the value of the property and the type of issue the policy needs to cover. The price can vary from £20 to £300.

However, if you need the policy to cover a bigger issue you may need to pay more. You can further discuss the price with a conveyancing solicitor to get a better idea of how much you're expected to pay.

Summary: A party wall agreement is important when selling your home!

Selling a house can be challenging, especially if you’re not familiar with the legal precautions required before selling. A party wall agreement is one of these legal requirements, and it’s essential to have one to ensure a smooth sale.

A party wall agreement will help you in the long run and will help guarantee that the work is carried out in a manner that is fair and reasonable to both property owners, and that any disputes are quickly resolved.

However, if you don’t have one, there are ways to work around it, such as obtaining indemnity insurance and ensuring you work with a knowledgeable solicitor to guide you through the selling process.

Lastly, remember that you can still sell your home even without the agreement, just make sure to price the property accordingly, market your home to the best of your ability, and hire an experienced and efficient estate agent!