Q: I have bought a Victorian terrace property that needs some work doing to it before I let it to tenants. On advice, I need to insert a damp proof course in the wall which adjoins the neighbouring property. Obviously, it will also benefit my neighbour, but I am prepared to pick up the bill if necessary. Can I just go ahead or do I need to give notice to anyone?

A: Needless to say there are regulations that govern building works which are carried out on or near to the boundary of adjoining properties. The regulations are enshrined in the Party Wall (etc) Act 1996. Any landowner who wishes to carry out works to his property which may affect a neighbouring property has to comply with the provisions of the Act.

The Act applies to all party structures: traditional party walls, party fence walls (this means walls that separate gardens and land rather than buildings) and any other structures (including floors and partitions) that separate buildings or parts of buildings.

The Act defines the various different types of party structure. A party wall is defined as a wall that separates buildings belonging to different owners.

The Act bestows upon you a statutory right, amongst others, to cut into the party wall to insert a damp proof course. Your right to do so, though, is subject to making good any damage caused to the adjoining property, and that includes damage to the internal furnishings and decorations.

However, you cannot simply exercise your right.

Before you do so, you must serve a ‘party structure notice’ on the owner of the adjoining property. The notice must be served at least two months before the works are due to begin. The notice doesn’t have to be in any particular format but must contain the landlord’s name and address, details of the proposed works and the date on which work is due to start.

You do not say whether the neighbouring property is tenanted or not, but this is an important point. The notice has to be served on the owner as opposed to the occupant of the neighbouring property. So, if your neighbouring property is let on a short-term tenancy agreement, it is not sufficient simply to serve notice on the tenant in occupation. You will have to give notice to either the freehold or leasehold owner.

Once served with a notice, the owner of the adjoining property can do one of several things. He or she will hopefully serve notice of consent to the works, in which case you can proceed with the works; or serve a counter notice requiring additional works to be carried out; or dissent to the works; or do nothing.

If your neighbouring owner does nothing, in law he or she will be deemed to have not consented to your plans.

If the neighbouring owner doesn’t consent to the works, or if he simply fails to reply to the notice, then officially a dispute arises.

The Act includes rules for the resolution of disputes. Basically, you and your neighbouring owner will need to jointly appoint a surveyor to consider the proposed works and make a decision on any matters in dispute. The surveyor’s decision is called a Party Wall Award.

Alternatively, if you and your neighbour cannot agree on a surveyor to instruct, you can each instruct a surveyor who can then identify and agree on a third surveyor to consider the issues and make the Award.

Generally speaking, you, as the owner who first serves the party structure notice, will have to bear the costs of the works and, if so determined by any appointed surveyor, the costs of obtaining the Award. So you can see that the costs can soon escalate: you should be aware of this before serving the party structure notice.

Ideally, all of this can be avoided simply by being neighbourly. If you can, talk to your neighbour. Will he or she share costs of work that is clearly necessary and beneficial to both properties? If not, and you make it clear you will pick up the bill, you can still try to obtain written consent for the works from your neighbouring owner. If and when you get this, you can carry on as you please - immediately if you wish.

Tea and biscuits, or maybe something a little stronger, are relatively inexpensive compared with the potential costs of a dispute.

Tim Plested is a property specialist at the legal firm Shoosmiths, 08700 866 833.