When planning construction work that impacts a shared wall, many property owners wonder if a party wall agreement can be made verbally. A party wall agreement is a legal document that ensures both parties—neighboring property owners—are clear on their responsibilities and expectations regarding construction work. While verbal agreements can be legally binding, they come with certain risks and challenges. This post explores whether a party wall agreement can be verbal, the importance of having a written agreement, and the benefits of formalizing this process.
What Does a Party Wall Contract Entail?
A party wall contract is a legally binding document that outlines the terms and conditions of the work to be carried out on or near a shared wall, boundary, or structure between two properties. The purpose of a party wall agreement is to protect the rights of both parties and ensure that the work is carried out with minimal risk to the shared property.
party wall agreements are required by law for specific types of construction or renovation work, particularly if they involve the shared wall, fence, or boundary of a property. For example, a party wall agreement may be necessary if you intend to:
- Build a new wall that sits on the boundary of the property.
- Cut into or alter a party wall.
- Remove a chimney that is part of the shared structure.
- Underpin a party wall to support foundation work.
The party wall agreement typically covers several essential aspects of the construction, including:
- Description of the work: What specific work will be done and how it will affect the shared wall or boundary.
- Timelines: The duration of the work, including start and completion dates.
- Responsibilities: Clearly defined responsibilities for both parties, such as access rights and the handling of damage caused during the work.
- Cost-sharing: An agreement on how costs will be divided between the two property owners.
- Dispute resolution: Steps to resolve any issues or disputes that may arise during or after the work is completed.
Party wall agreements are typically signed by both property owners and may also be witnessed by an independent surveyor, especially if there is disagreement between the parties or if the work is complex.
Is a Verbal Party Wall Contract Legally Binding?
This is a key question for property owners considering their options. Can a party wall contract be verbal, or must it always be in writing? The short answer is yes—a verbal party wall agreement can be legally binding. However, there are several critical considerations you need to be aware of.
Legality of Verbal Agreements
In theory, a verbal party wall contract is valid. As long as both parties agree to the terms and conditions, a contract can be made verbally. According to contract law, for any agreement to be legally binding, it must contain the following elements:
- Offer: One party proposes to carry out the work or make changes to the shared structure.
- Acceptance: The other party agrees to the proposal.
- Consideration: The parties agree on the exchange of something of value, such as costs or work to be done.
- Intention to be legally bound: Both parties must intend for their agreement to be legally enforceable.
In the case of a verbal party wall agreement, all these elements can be in place. However, proving the existence and terms of the agreement can be challenging without written documentation, which brings us to the next important point. Learn more about your rights under the Party Wall Act here.
What Makes Verbal Agreements So Hard to Trust?
While a verbal agreement can technically be valid, there are several practical challenges associated with relying on verbal contracts, particularly in a situation as complex as construction work affecting a shared wall. The key issues with a verbal agreement include:
- Lack of evidence: Without a written document, it can be difficult to prove the specific terms and conditions that were agreed upon. If there is a dispute later on, it may be hard to prove what was said and agreed to during a conversation.
- Misunderstandings: Verbal agreements can be vague or subject to differing interpretations. What one party understands as a minor change might be seen as a major alteration by the other party.
- Enforceability: If one party breaches the agreement, it may be harder to enforce a verbal agreement through legal action, as there is no written record of the terms.
- Lack of clarity: Construction work is often complex and detailed, and the terms of a party wall agreement are no exception. A verbal agreement might leave room for ambiguity regarding responsibilities, timelines, or costs.
What are the benefits of having a written party wall agreement?
While a verbal party wall agreement can be valid, it’s clear that there are significant risks and disadvantages to relying on it. This is why having a written party wall agreement is strongly recommended. A written agreement provides several key benefits that protect both property owners and reduce the likelihood of disputes.
- Legal Protection : One of the most important reasons to have a written party wall agreement is the legal protection it provides. A written contract serves as a formal, enforceable document that can be used in legal proceedings if a dispute arises. In the case of a verbal agreement, both parties might struggle to prove their claims, but a written agreement is clear, binding, and backed by law.
- Evidence and Documentation : A written party wall agreement provides clear evidence of what was agreed upon. This can be invaluable in the event of a retaining agreement dispute . It specifies the terms, responsibilities, timelines, and costs, making it easier to resolve any issues if they arise. If one party fails to meet their obligations or causes damage, the written agreement can serve as proof of the terms that were originally set out.
- Clarity and Precision : A written agreement offers clarity. Construction work can often be complicated, and there is a lot of room for misunderstandings or confusion. With a written agreement, both parties have a clear understanding of what is expected, which reduces the potential for miscommunication. The contract will clearly define the scope of work, access rights, timelines, and how costs will be shared.
- Enforceability : A written contract is enforceable in a court of law. If there is a breach of contract, the parties can take legal action to seek a resolution. For example, if one party doesn’t honor the terms of the agreement or causes damage to the shared structure, the written contract will provide the basis for any legal action. Verbal contracts, on the other hand, may be harder to enforce because they lack the documentation needed to substantiate claims.
- Dispute Resolution : Disputes can happen even with a written agreement, but it will be easier to resolve them if the terms are clearly laid out. The agreement may also include clauses about how disputes will be handled, such as through mediation or arbitration, which can save time and reduce the costs associated with lengthy legal battles.
However, it is important to note that a verbal agreement is not recommended due to the lack of written evidence in the event of a dispute. In most cases, a written agreement is necessary to avoid disputes and protect the interests of all parties involved. About us Party Wall Solutions for further assistance.
What are the potential risks of not having a party wall agreement?
While many people might feel tempted to avoid the paperwork involved in drafting a party wall agreement, the risks of proceeding without one can be substantial. Here are a few potential issues:
- Damage to Property : Without a clear understanding between both parties, construction work could lead to accidental damage to the shared wall or boundary. A lack of agreement on how to repair damages could lead to costly repairs, disputes, and even legal battles.
- Legal Complications : If you don’t have a party wall agreement, you may be in breach of local or national construction regulations. This could result in fines or even being forced to halt construction work until the proper agreements are in place.
- Relationship Strain with Neighbors : Not having a formal agreement can lead to misunderstandings or strained relationships with your neighbors. Having a party wall agreement ensures that everyone is on the same page regarding rights, access, and costs, which can help maintain good neighborly relations throughout the construction project.If you’re curious about what happens if your neighbour objects to a Party Wall Agreement, read further here.
How to Create a Party Wall Agreement ?
If you’ve decided to move forward with a party wall agreement, the process usually involves several steps:
- Notify your neighbor : Before starting work that may affect a shared wall, you must notify your neighbor in writing, even if a verbal agreement is reached. The notice should include details of the work and when it is expected to begin.
- Agree on terms : Once the notice is served, both parties should agree on the specifics of the work, responsibilities, timelines, and costs.
- Hire a surveyor : In cases of disagreement, it may be necessary to hire an independent surveyor to assess the situation and create a formal written party wall agreement. The surveyor can also help resolve disputes and ensure that the terms are fair for both parties.
- Sign the agreement : Once the terms are agreed upon, both parties should sign the written agreement. This finalizes the contract and ensures legal protection for both parties. Learn more about Can a party wall agreement be declined?
FAQ
Can a party wall agreement be made verbally?
Yes, verbal agreements can be legally binding, but they’re hard to prove and enforce.
Is a party wall agreement a legal requirement?
Yes, if your construction affects a shared wall, boundary, or neighboring structure.
What happens if I don’t have a party wall agreement?
You could face construction delays, legal action, or damage claims from neighbors.
Can my neighbor refuse to sign the agreement?
Yes, and if they do, surveyors may be appointed to resolve the matter impartially.
Where can I get help with a party wall agreement?
You can consult a party wall surveyor or contact services like Party Wall Solutions.
Final Thought
In conclusion, while a verbal party wall agreement can technically be legally binding, it is not advisable. The lack of written documentation increases the potential for misunderstandings, disputes, and difficulty in enforcing the terms. A written party wall agreement provides much-needed legal protection, clarity, and security for both property owners. For a smoother construction process and to avoid future conflicts, it’s always best to ensure your contract is formally documented in writing.
If you have any questions or need more information, please contact us on 03300100075.
