Definition
A party wall is a dividing partition between two adjoining buildings that is shared by the occupants of each residence or business. Typically, the builder lays the wall along a property line dividing two terraced houses, so that one half of the wall’s thickness lies on each side. This type of wall is usually structural. Party walls can also be formed by two abutting walls built at different times. The term can be also used to describe a division between separate units within a multi-unit apartment complex. Very often the wall in this case is non-structural but designed to meet established criteria for sound and/or fire protection, i.e. a firewall.
Party Wall
What is ‘Party Wall’
In real estate, a shared wall that separates housing units. Party walls are most commonly found in apartments, condominiums and office complexes where different tenants share a common structure. Party walls can be a non-structural wall, but laws in various jurisdictions outline requirements for how party walls must be constructed.
Explaining ‘Party Wall’
Party walls are sometimes built with additional insulation so that sound from an adjoining unit does not disturb neighbors. In addition, some building codes require party walls to be built as fire walls, with noncombustible material extending from the foundation to the roof. If a fire occurs in one unit, a fire wall helps to slow the spread of the fire into adjoining units. Not only is this safer for tenants, but it also helps to contain fires and limit property damage.
Further Reading
- Related party transactions and corporate governance – www.emerald.com [PDF]
- The economics of conflicts of interest in financial institutions – www.sciencedirect.com [PDF]
- Economic consequences of financial reporting and disclosure regulation: A review and suggestions for future research – papers.ssrn.com [PDF]
- Causes and Effects of Wall Street Financial Turmoil [J] – en.cnki.com.cn [PDF]
- Wall street, capitol hill, and k street: Political influence and financial regulation – www.journals.uchicago.edu [PDF]
