Welcome to a new installment of Tales From Tennis Crescent where I’m sharing my journey re-inventing a 1960s super-solid utilitarian plain-jane duplex on Tennis Crescent in Riverdale.
In my last post, I guided a follower dealing with architects, builders, and Toronto’s Committee of Adjustment. I then described a setback: the urban planner I hired omitted the crucial wording, “the addition and extension will be built on the zero lot line,” from my application. Although the drawings showed the addition on the lot line, this omission meant that, unless I secured a Party Wall Agreement, I would have to set back the third-floor addition 18″ from the wall or return to the Committee of Adjustment to update the approval.
As it turned out, my attached neighbours kindly accepted my offer of $2500 in exchange for their Party Wall Agreement, which is the sum I would have otherwise spent going back to the Committee. In a lovely gesture, they used the funds to build a new privacy fence between our back yards, which I thought was very kind of them.
Since then, my architect and engineer have tried to secure the Building Permit, but it’s been turned down three times. In the last refusal, the plans examiner seemed extra picky, raising issues my team hadn’t previously faced. For example, in response to a fire risk concern, he questioned our use of Roxul, a non-combustible material often used as a fire stop. These materials are fire-rated and meet building code standards. Still, the examiner said only a concrete block was acceptable for my new third-floor party wall addition. This baffled my team, but the City would not budge. Perhaps recent news about Residents In 5 West End Homes Pushed Out By 4-Alarm Fire (caused by a dropped roofer’s torch) put the spotlight on how close our housing stock is, prompting the City to act more cautiously about fire risks. I support safety and security, but this new requirement meant new drawings had to be prepared, stamped, and resubmitted. Sadly, these delays and material changes have significantly increased costs. My project is now costing over $100,000 more than I estimated two years ago, which is far from ideal.
Through my own debacle, I’ve come to learn that there are many contradictory opinions on whether a Party Wall Agreement with your neighbour(s) is necessary, or whether one can proceed without one if your permit drawings otherwise comply. After sleuthing on the City of Toronto website, I discovered the City has a policy stating that Building Permits must be issued for all properties that share a Party Wall, but it doesn’t clarify whether your neighbour has to approve.
Here’s an interesting story. I recently received a call from a woman in distress who discovered that the sale of her house was at risk of not closing because an outstanding permit related to the Party Wall was shared with her neighbour. She had recently sold this property, which she had purchased specifically to renovate and resell. Although the renovation had been completed with all permits signed off and closed by the City, none of the work she did impacted the Party Wall.
However, while she was renovating her house, her attached neighbours asked her if it was ok if they dug down their basement and underpinned the foundation, including along their Party Wall. She verbally agreed. With her renovation complete, she sold the house while the neighbours had their basement next door underpinned.
As the closing date approached, the buyer’s lawyer called to say there was an outstanding Party Wall permit. Unless it was closed, the property would not have a clear title, and ownership could not be transferred. The woman called the City for clarification, as she had never signed paperwork or obtained a Party Wall permit. The City explained that a Party Wall Permit—the official permission from the City for shared walls between attached homes—is automatically issued when an attached neighbour is doing work that may impact the Party Wall. Nothing signed by the attached neighbour was required, as the neighbour submitted a form stating they had obtained consent. For the side underpinning their basement, a Building permit (required for major structural work) was issued. For the attached side, a Party Wall permit was registered by the City. This is standard protocol.
I called the City for clarification regarding my own situation. The City confirmed that – if I had had the words “the addition and extension will be built on the zero lot line” in my Committee of Adjustment Application – and the Permit drawings showed my third-floor addition was being constructed on just my half of the Party Wall, then I would not have required a signed Party Wall Agreement from my attached neighbours. In that circumstance, once a Building Permit was issued for my third-floor addition, a Party Wall Permit would automatically be issued on my adjoining neighbour’s property with or without their written approval.
My neighbours have consented and signed a Party Wall Agreement. Instead of my addition being constructed on only my half of the Party Wall (originally planned as a steel frame with Roxul, a type of mineral wool insulation), my third-floor addition can now be built on the entire Party Wall. The architects, engineers, and the City prefer this approach. Using concrete block (masonry units formed from concrete, often used for their strength and fire resistance) on top of the existing wall ensures structural continuity, stability, and fire safety. I see the merit in this.
There’s a further twist for the woman selling her flip. The lawyer representing her managed to convince the Title Insurance firm to transfer the existing Title Insurance Policy to the new Buyer, which allowed the outstanding permit for the underpinning on the Party Wall to remain (the underpinning was still in progress, so there was no way the permit could have been closed prior to the sale). What’s strange is that the law purportedly stipulates that Title Insurance policies cannot be transferred and that new ones must be arranged. I did not have the woman’s lawyer’s contact information to speak with her lawyer for further clarification. As far as that Seller was concerned, all was resolved, and she could move forward. Regardless, this information suggests there may be challenges for any owner affected by a neighbour’s Party Wall renovation.
Addendum 1 – After many calls, the City of Toronto’s official line is: Neighbours impacted by a Party Wall must give written consent via a Party Wall Agreement. After this is provided, the City issues the Building Permit and notes the Agreement for both properties. If the attached neighbour withholds consent, the permit is denied. However, I’ve learned that because the third party’s signature was not always required (this may have recently changed), some applicants submitted paperwork implying consent when it had not been given. This has led to lawsuits among property owners and frustration with the City Permit Office for failing to require stricter, legally binding paperwork.
Addendum 2 – A reader sent a note after the post date that offers additional advice. He wrote, “I just negotiated one of these agreements with my client’s neighbour, who just happened to be a solicitor for the city! My client was underpinning her foundation walls, including the party wall. Their Party Wall Agreement basically made her solely responsible for any damage to the neighbouring property and included assurances that her contractor and engineer were suitably insured to cover any deficiencies which were the result of the underpinning.” Great insight!
Addendum 3 – December 18th, 2020 – Although it’s been 3 years since this post went live, this blog still draws tremendous interest. Most readers own semi-detached or row homes and want to underpin their basements, or live next door to someone seeking consent to do so. Even now, people contacting the City rarely get clear directions. One reader allowed me to share their experience: They spent an hour on the phone with a plans examiner. The general rule is, “Does the work you’re proposing impact the shared wall enough to require a Party Wall Agreement?” The City prefers to keep interpretations “loose.”
Check out these other Tales From Tennis Crescent posts!
Dear Urbaneer: I Need Help With Architects, Builders And Toronto’s Committee Of Adjustment
The Pitfalls Of Permit Fees And Toronto Real Estate
On My Obstacles Securing A City Of Toronto Building Permit
Have questions? We’re here to help!
~ Steve
Steven Fudge, Sales Representative
& The Innovative Urbaneer Team
Bosley Real Estate Ltd., Brokerage – (416) 322-8000
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Celebrating Twenty-Five Years As A Top-Producing Toronto Realtor
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