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Compensation or Repair Under the Party Wall Act: A Guide to Section 2 Works

Friday 20th September 2024

Under the Party Wall etc. Act 1996, when works are notified under Section 2, which pertains to work on a party wall (such as cutting into, raising, or rebuilding it), the adjoining owner does not automatically have the right to demand compensation instead of repairs. The decision between compensation or repair must be determined by the appointed surveyors involved in the party wall process.

Section 2 Works and the Role of Surveyors

Section 2 of the Act covers a broad range of works on party walls, including alterations, cutting into the wall, raising its height, and other structural changes. When such works are notified, it is the responsibility of both the Building Owner (the party carrying out the work) and the Adjoining Owner (the neighbour affected by the work) to appoint surveyors. These surveyors are then tasked with ensuring that the works are carried out in compliance with the Act and with minimal disruption to the Adjoining Owner.

Should damage occur to the Adjoining Owner's property as a result of the works, it is the surveyors who must assess how that damage is to be rectified. The primary objective of the surveyors is typically to restore the damaged area of the property to its previous condition. This restoration could include repairs such as plastering over cracks, repainting, or more extensive reconstruction work, depending on the extent of the damage.

Right to Compensation

While the Adjoining Owner might prefer financial compensation instead of repairs, this is not an automatic right. The surveyors must first decide whether compensation is appropriate in the circumstances. In many cases, they will prioritise restoring the property to its original condition through repair, as this is often the most straightforward and fair solution. However, there are instances where compensation may be a more practical outcome. This could happen if the damage is so extensive that repairs are impractical, or if the Adjoining Owner expresses a preference for compensation, and both parties, including the Building Owner, agree to this route.

The surveyors have the authority to determine what is reasonable based on the nature of the damage and the preferences of both parties. However, even if the Adjoining Owner expresses a desire for compensation, it is the surveyors who make the final decision, taking into account the specifics of the case.

Surveyors' Determination

Ultimately, the decision between compensation and repair lies with the surveyors. They have the expertise and impartiality to make a fair judgment based on the extent of the damage, the feasibility of repairs, and the preferences of the parties involved. Their decision will be recorded in a Party Wall Award, which legally binds both parties to the outcome. The award will detail how the damage is to be addressed and whether repairs or compensation will be granted.

Conclusion
In summary, under the Party Wall etc. Act 1996, the Adjoining Owner does not have an automatic right to demand compensation for damage caused by works notified under Section 2. Instead, the appointed surveyors are responsible for deciding whether the damage should be repaired or if compensation is appropriate. The surveyors' decision ensures a fair and legally binding resolution for both parties involved in the works.