Assignment of Party Wall Agreement

In construction and real estate development, the term “party wall” refers to the shared wall between two properties. When building or renovating, it is essential to establish a Party Wall Agreement that outlines the rights and responsibilities of the parties involved. This agreement is known as the Party Wall Award, and it is legally binding once it is signed.

The assignment of a Party Wall Agreement is a common occurrence that can take place between the owners of two adjacent properties. When one of the parties sells their property, their rights and obligations under the Party Wall Award are transferred to the new owner. The process of transferring the Party Wall Agreement from the previous owner to the new one is known as assignment.

Before the assignment of the Party Wall Agreement can take place, there are a few things that need to be considered. Here are some important factors that both parties should keep in mind:

1. Consent of the Other Party: Before the assignment can take place, the other party involved in the Party Wall Agreement must give their consent to the transfer. This is because they have a vested interest in ensuring that the new owner will adhere to the terms of the agreement.

2. Payment of Fees: Some agreements may require the payment of fees to assign the Party Wall Agreement. It is essential to check the terms of the agreement to determine if any fees apply.

3. Updating the Agreement: In some cases, the Party Wall Agreement may need to be updated before assignment can take place. This could be due to changes in legislation or the specifics of the agreement itself. All parties involved should be aware of any necessary updates.

Once these factors are considered, the assignment of the Party Wall Agreement can go ahead. The process involves the preparation of a document that outlines the specifics of the assignment. This document must be signed by both parties involved in the agreement, as well as any relevant witnesses.

The assignment of a Party Wall Agreement is a crucial step in ensuring that both parties are protected during construction or renovation projects. It provides clarity on the rights and obligations of each party and helps to avoid disputes that could arise in the future. If you are involved in a Party Wall Agreement and are considering assigning it to a new owner, be sure to follow the necessary steps to ensure a smooth transition.