Have you ever dealt with a Party Wall Agreement?

Question

I'm acquiring a townhome that has under the same roof, a second town home adjoined by a wall that is owned by someone else.

Halfway through closing, I was informed I have to sign a Party Wall Agreement and the other owner must sign as well.

I've never heard of this. I own other properties in a similar configuration. Anyone had this experience?

Any gotchas I should consider? Do I have to sign it? Supposedly under Fannie Mae, it's required per my lender.

Matthew Olszak · Answer

@Steve S. Yep. The Party Wall Agreement states in fancy legal terms that neither of you are going to do anything to the common wall that will affect the other - ie each of you has an easement extending onto the other person's half of the wall.

No big deal and I doubt you'll get any push-back from the other owner as it benefits them as well. They can't take down the wall themselves or they'll be in a worse position with their property (the roof will likely collapse or you could walk onto their property, etc), so it benefits them for you to sign off that you won't do anything either.

Steve S. · Answer

On top of that, my lender sent me an email with the news saying the that "title had to prepare a Party Wall Agreement so we added a fee and amdended the recording and erecording fees" adding several hundred $ to my Closing costs.

?????????????

Have you ever dealt with a Party Wall Agreement?

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