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Christine Mo…, Real Estate Pro in Saint Petersburg, FL

Has anyone had experience on dealing w/problems & FHA Loan DUPLEX?

Asked by Christine Moscinski, Saint Petersburg, FL Mon Jun 30, 2008

Client buying a DUPLEX and lender says FHA guidelines are that a party-wall agreement needed but none existed before?

Help the community by answering this question:


Hi Christine:

I've been looking for your answer for the past day or so. I couldn't find precise information in HUD's guidelines nor in some 20 years of Mortgagee Letters. Called FHA Connection today - they weren't able to answer... escalated the question to the appraisal department... no answer yet.

However, a colleague well versed in FHA minutiae was able to help out. Here is his posting:

Deep River,

This is the guidance from HUD for the items required in PUD legal documents to help attorneys draw up legal documents that conform to HUD guidelines.



Form 4


"Section 1. General Rules of Law to Apply. Each wall which is built as a part of the original construction of the homes upon the Properties and placed on the dividing line between the Lots shall constitute a party wall, and, to the extent not inconsistent with the provisions of this Article, the general rules of law regarding party walls and liability for property damage due to negligence or willful acts or omissions shall apply thereto."

"Section 2. Sharing of Repair and Maintenance. The cost of reasonable repair and maintenance of a party wall shall be shared by the Owners who make use of the wall in proportion to such use."

"Section 3. Destruction by Fire or Other Casualty. If a party wall is destroyed or damaged by fire or other casualty, any Owner who has used the wall may restore it, and if the other Owners thereafter make use of the wall, they shall contribute to the cost of restoration thereof in proportion to such use without prejudice, however, to the right of any such Owners to call for a larger contribution from the others under any rule of law regarding liability for negligent or willful acts or omissions."

"Section 4. Weatherproofing. Notwithstanding any other provision of this Article, an Owner who by his negligent or willful act causes the party wall to be exposed to the elements shall bear the whole cost of furnishing the necessary protection against such elements."

"Section 5. Right to Contribution Runs With Land. The right of any Owner to contribution from any other Owner under this Article shall be appurtenant to the land and shall pass to such Owner´s successors in title."

"Section 6. Arbitration. In the event of any dispute arising concerning a party wall, or under the provisions of this Article, each party shall choose one arbitrator, and such arbitrators shall choose one additional arbitrator, and the decision shall be by a majority of all the arbitrators."

by Merlot July 1, 2008

Sounds like there is no standard form or supplement - you will have to have an attorney draw up an addendum to the title or deed. Below is a link to the HUD guidelines you will need:
1 vote Thank Flag Link Tue Jul 1, 2008
Closed the deal. No party wall agreement was necessary.
0 votes Thank Flag Link Wed May 6, 2009
Well the fact is that there was no party wall agreement in the past and my question was if FHA "required" that agreement to be in place even if none existed previously.

The answer is no.
0 votes Thank Flag Link Wed Jul 2, 2008
Awhile back, I has to chase around getting a party wall agreement, so a loan could close. It is hard if the other side is out of state or working etc. I suggest that now that you closed and at your liesure , get one done with the neighbors for their sake and yours down the road.
Web Reference:
0 votes Thank Flag Link Wed Jul 2, 2008
Thank you so much for your response! I appreciate it. Turns out the lender (underwriting at National City was an experience in itself!) made mistake.

It was not needed after all, we had a succesfull close yesterday!
0 votes Thank Flag Link Wed Jul 2, 2008
Christine, I rec'd a reply from the FHA Resource Center yesterday that states FHA no longer requires a Party Wall agreement for approval.

Send me an e-mail through Trulia and I'll reply with the FHA incident number for your client's lender.

Bear in mind that lenders often have guidelines on top of FHA guidelines to satsify their investors.
0 votes Thank Flag Link Wed Jul 2, 2008
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