Commercial Investment Real Estate September/October 2017 | Page 21

Establishing Ground Rules This was the scenario for the recent transaction described above. Through a title search and receipt of a commitment for title insurance and the underlying exception documents, the buyers and consulting attorney could review and understand the Party Wall Agreement prior to closing. This group then could deter- mine the best way to address the Party Wall Agreement, so the lender was comfortable with the borrower and acquiring owner taking on those rights and obligations. Consenting to a Party Wall Agreement prior to possible dis- putes benefits the owners. In this recent transaction, the attor- neys requested an estoppel certificate by the adjacent owner that confirmed no known defaults under the Party Wall Agreement or possible claims relating to it at the time of closing. Those involved in the deal understood the rights, the obliga- tions, and the validity of the Party Wall Agreement. Barbara Anne “B.A.” Spignardo is a member of Shapiro, Lifschitz & Schram, P.C.’s Real Estate and Business groups. Contact her at [email protected]. Life with The Pin CCIM Institute provides its members with the most sophisticated knowledge, technology, and operational platform to power their business. CCIM Membership Benefits: Lifelong Learning STDB Free and discounted courses covering crowdfunding, big data, and more. The industry’s best digital toolkit for market analysis. FindaCCIM.com and CCIM Connect CIRE Magazine Subscribtion An exclusive global network for business and industry intelligence. The award-winning publication that covers market trends and innovations. Affinity Provider Program DealShare Exclusive discounts on travel, tech tools, printing, and more. A database of listings not found anywhere else. Experience life with the pin. Visit www.ccim.com/benefits CCIM.COM September | October 2017 19 Such agreements delineate the process for making changes to the party wall, requiring agreement and consent from the adjacent owner. For example, a Party Wall Agreement will not inhibit an owner from nailing a picture to his internal portion of the shared wall or the other owner hanging a painting on the opposite side of the wall. However, a Party Wall Agreement will address structural changes and alterations to the party wall, which require the consent from the adjacent owner. Once owners legally consent to the terms, Party Wall Agree- ments should be recorded in the applicable land records. By including the Party Wall Agreement in the applicable land records, potential purchasers know about it and understand their rights and obligations. “Picture row houses and commercial structures sharing walls. Which owner or owners can claim those walls? Although party walls may be quite common, Party Wall Agreements are unusual.”