Security for Expenses: Section 12 of the Party Wall Act
“Section 12 of the party wall act refers to securities for expenses………………………. There is deliberately no means of summary enforcement as it is felt that this could fetter the jurisdiction of the courts. Most owners and adjoining owners in experience thus far discharge their obligations voluntarily. The normal county court procedures remain for cases where they do not. An unappealed party wall award would be strong prima facie evidence that it was reasonable. Experience shows that there are very few complications in this area.”[The Earl of Lytton]
Section 12(1) provides that an adjoining owner, prior to any of the intended works being carried out, is entitled to serve a notice requiring a building owner to arrange for security to be given to the adjoining owner for any damage that may be caused by the proposed works. The parties can elect to agree the security or, in the event of a dispute, the matter will be determined by an appointed surveyor, or surveyors, as the case may be.
Section 12(2) provides that in the case of an adjoining owner being liable for a proportion of the costs of any works pursuant to the Act, or the adjoining owner elects to serve a notice for the security of expenses, prior to any of the works commencing, a building owner is entitled to serve a counter notice on an adjoining owner requiring them to give such security to which they both agree, or, in the case of the dispute, the matter will be determined by the appointed surveyor(s).
Section 12(3) provides that an adjoining owner who fails to comply within one month of being served a counter notice by a building owner and/or a determination from the appointed surveyor(s), will not be entitled to rely on their original notice for the security of expenses as it shall cease to have an effect.
Should any part of this section 12 of the Party Wall Act affect you, get in touch with Icon Surveyors we are always happy to help. Here at Icon Surveyors there no question to big or small.
Note*: This blog is not an authoritative interpretation of the law; it is intended as a general guide.