Party Wall Escrow

Escrow accounts to hold Security for Expenses deposits under s12 of the Party Wall etc. Act 1996.

Registered with the FCA for the operation of payment accounts.

Party Wall etc. Act 1996

The Party Wall Act etc. 1996 (PWA) was introduced to protect building owners from works carried out by adjoining owners that might interrupt their use and enjoyment or a party wall or structure.

s12 - Security for Expenses

(1) An adjoining owner may serve a notice requiring the building owner before he begins any work in the exercise of the rights conferred by this Act to give such security as may be agreed between the owners or in the event of dispute determined in accordance with section 10.

(2) Where— (a)in the exercise of the rights conferred by this Act an adjoining owner requires the building owner to carry out any work the expenses of which are to be defrayed in whole or in part by the adjoining owner; or (b)an adjoining owner serves a notice on the building owner under subsection (1), the building owner may before beginning the work to which the requirement or notice relates serve a notice on the adjoining owner requiring him to give such security as may be agreed between the owners or in the event of dispute determined in accordance with section 10.

Who holds security for costs in a party wall matter?

The Party Wall Act only sets out the nature of a security request; it is silent on how the security should be handled. Accordingly, it is up to the parties to decide how best to protect each of their interests. We propose the safe keeping of funds in a Party Wall Escrow Account.

Party Wall Escrow

A walkthrough of the process

Escrow Documents

We work with both parties to agree the basis for the escrow account and confirm the circumstances in which we are to make payment, together with the documents or notices upon which we may act.


The party required to give security deposits the sum with us, and we provide a receipt for the same. The building owner and adjoining owner(s) can each access our platform 24/7 to confirm the balance of the account.

Release of Security

Once the terms of the security for expenses are satisfied and we are sent the requisite notices, we release the security for expenses back to the party who deposited it.

Practical Questions

How does the Party Wall Escrow Account work?

What is Security for Expenses?

Under the Party Wall etc. Act 1996, in some circumstances a party is required to pay a sum into a third-party account to be held for the duration of the works.

Can my solicitor hold the funds?

In certain circumstances, yes. The Solicitors Regulation Authority has suggested that if the solicitor is not handling an underlying transaction, however, this might be a breach of one of their rules of conduct.

What is 'non-neg' (non-negligence) insurance?

Most household insurance policies offer protection in circumstances where a contractor has acted negligently. There are times, however, when considerable damage can be caused without any negligence. To account for this, specialist 'non-negligence' insurance policies are designed to pay out even if there is no negligence on the part of the contractor.

How does non-neg insurance relate to Security for Expenses?

There are almost always limitations and exceptions in insurance policies. Security for Expenses is designed to address any shortcomings that may exist with a 'non-neg' insurance policy, or to replace it altogether.

How much should be deposited?

The surveyors will usually decide the sum to be deposited and include this information in their award, together with details of how and when the money is to be returned to the party giving security.

Is my money safe?

We are registered with the Financial Conduct Authority as a Small Payment Institution (FRN: 87774) and your money will be held in a tier 1 UK bank, at all times separately from our own business funds.

Will I receive interest on my deposit?

We do not pay interest on sums deposited with us.

Further Information

Request a quote or sample account documentation


Regulatory Notices

Payment Services Regulations 2017

dospay is a trading name of DOS & Co. Ltd, a company registered in England and Wales with company number 08294966.
DOS & Co. Ltd. is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (FRN: 833374) for the provision of payment services. Digital Batch Payments are powered by Payment Rails Ltd, which is authorised by the Financial Conduct Authority (the “FCA”) under the Payment Service Regulations 2017 (registered reference no. 771016) for the provision of payment services.

dospay is wholly-owned and operated by DOS & Co.

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