A Party Wall is usually a shared Wall which separates neighbours in a rented or owned units. Party Walls are common in condominiums, apartments, and offices. In these places, different tenants share a common structure.
A Party Wall is often a non-structural Wall. However, differences in various jurisdictions have given unified requirements on how a Party Wall should be built. Sometimes, a Party Wall is built with an added insulation which makes it sound proof when neighbours are making some sounds that might be distracting.
As for a Party Wall agreement, this is majorly used by business owners that are looking to avoid litigation that amounted from disputes. The agreement states who is obliged to maintain the Wall and if the person that is supposed to maintain it doesn’t, the repercussion he will be facing.
So basically, a Party Wall agreement obliges the owners of the properties to maintain their own portion of the Wall in a harmonious way.
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