DEFINITION of '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.

BREAKING DOWN '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.

RELATED TERMS
  1. Shared Equity Finance Agreements

    When two parties purchase a primary residence because one party ...
  2. Chinese Wall

    The ethical barrier between different divisions of a financial ...
  3. FIRE Economy

    Investopedia explains: a fire economy is the sector composed ...
  4. American Rule

    A rule in law and economics that says attorney fees should be ...
  5. Wall Of Worry

    The financial markets' periodic tendency to surmount a host of ...
  6. Third Party Beneficiary

    A person who will benefit from a contract made between two other ...
Related Articles
  1. Investing

    Party City Holdings: How It's Fared Since Its 2015 IPO (PRTY)

    Learn about Party City Holding's performance as a public company. Investors would have lost much more than the Russell 2000 Index by investing after the IPO.
  2. Personal Finance

    How To Get A Job On Wall Street

    Although Wall Street has its share of problems, finding people who want to become traders isn’t one of them.
  3. Personal Finance

    How To Land a Wall Street Job Out of College

    Getting a job on Wall Street right after college can be difficult, but there many paths that eventually lead to Wall Street.
  4. Personal Finance

    How To Get A Job On Wall Street

    There are many roads that lead to Wall Street, but here are some of the more direct routes.
  5. Financial Advisor

    Making It Big On Wall Street

    Read about some of the most glamorous Wall Street jobs and what it takes to land one.
  6. Investing

    Becoming A Landlord: More Trouble Than It's Worth?

    On the surface, being a landlord seems likes like a surefire bet, but it's usually more headache than it's worth.
  7. Small Business

    Master The Art Of Negotiation

    Learn the strategies that will help you to come out on top in any negotiation.
  8. Insights

    The Top 10 Wall Street Movies

    What movie takes the top spot? Hint: It's not Wall Street.
  9. Retirement

    Could Being a Landlord Pay for Your Retirement?

    If you have the money to buy them and the energy to run them – or the funds to pay a good manager – rental properties can help pay for your retirement.
RELATED FAQS
  1. How is something "brought over the wall" in an investment bank?

    An analyst who lends his or her expertise to an underwriting department is said to have been "brought over the wall". In ... Read Answer >>
  2. Where does the name "Wall Street" come from?

    As with many of the famous streets and roads in the world, Wall Street's origins have historical significance. Its name is ... Read Answer >>
  3. How are arm's-length transactions determined by law?

    Determine if transactions are conducted at arm's length by checking if the parties to a contract are independent and transact ... Read Answer >>
  4. Does homeowners insurance cover fires?

    Understand if your homeowners insurance policy covers fire damage so you can protect what is likely to be your most valuable ... Read Answer >>
  5. How do you make working capital adjustments in transfer pricing?

    Understand how working capital adjustments are applicable to transfer pricing. Learn about the arm's length standard and ... Read Answer >>
Hot Definitions
  1. Co-pay

    A type of insurance policy where the insured pays a specified amount of out-of-pocket expenses for health-care services such ...
  2. Protectionism

    Government actions and policies that restrict or restrain international trade, often done with the intent of protecting local ...
  3. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  4. Demonetization

    Demonetization is the act of stripping a currency unit of its status as legal tender and is necessary whenever there is a ...
  5. Investment

    An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic ...
  6. Redlining

    The unethical practice whereby financial institutions make it extremely difficult or impossible for residents of poor inner-city ...
Trading Center