As a board member or property manager of a condominium or cooperative association in New York City, you’re often dealing with the complexities of neighboring buildings needing to protect or access your building in order to perform work on their own building. Situations frequently arise where access to your building, or granting access to an adjacent building, is necessary for essential maintenance, repairs, or protective measures. This often involves the granting or receiving of a license, a process that demands careful consideration to protect your building’s interests. This article explores the legal landscape surrounding these inter-building licenses in NYC, offering guidance on how to navigate these situations effectively.

Why Licenses Are Necessary

In densely populated NYC, buildings often share party walls, or rely on each other for structural support or access to utilities. Whether it’s waterproofing a shared wall, repairing a damaged facade that impacts a neighboring building, or accessing your building to install protective scaffolding during adjacent construction, formalizing these arrangements with a license agreement is crucial.

Key Considerations for License Agreements (When Granting Access):

When your building is granting access to an adjacent building, a well-drafted license agreement is paramount. Here are some of the key elements:

• Scope of Work: Precisely define the work to be performed by the neighboring building, including detailed descriptions, specifications, and architectural drawings if necessary. Limit the scope to only what is absolutely essential.
• License Consideration: Specify consideration that is going to be required for your building to give a license to your neighbor. Sometimes fees are warranted and other times just being neighborly is the way to go because one day you may need a license from that neighbor.
• Duration of Access: Specify exact dates and times, including provisions for extensions only with written approval from your board. Strictly limit the timeframe to minimize disruption.
• Responsibilities of the Parties: Clearly delineate who is responsible for what. Who will bear the cost of the work? Who is responsible for repairing any damage to your building caused by the adjacent building’s work? Who will oversee the work?
• Insurance and Liability:  Crucially, require the adjacent building to provide comprehensive insurance, including general liability, property damage, and workers’ compensation. Obtain certificates of insurance and ensure your association is named as an additional insured. A robust indemnification clause is essential, protecting your building from any claims arising from the access and the work.
• Indemnification: This clause should be broad, covering any damages or injuries to persons or property arising from the adjacent building’s actions or inactions.
• Restoration of Your Premises: The agreement must detail the obligation to restore your building to its original condition after the work is completed, including repairing any damage and cleaning the area. Include a process for inspection and approval of the restoration.
• Security Measures: Address security concerns. Who will have access to your building? What security protocols will be followed?
• Dispute Resolution: Include a mechanism for resolving disputes, such as mediation or arbitration.
• Legal Counsel: Consult with legal counsel before granting any access. Protecting your building is paramount.

Key Considerations for License Agreements (When Receiving Access):

When your building needs access to an adjacent building, while some of the above points still apply, the focus shifts:

• Necessity: Demonstrate the absolute necessity of the access to the neighboring building.
• Least Intrusive Method: Explore all less intrusive alternatives before requesting access.
• Reciprocity: Consider the implications of future reciprocal access requests from the neighboring building.
• Negotiation: Be prepared to negotiate terms that are reasonable and protect the neighboring building’s interests.

NYC-Specific Considerations:

• NYC Administrative Code: Be aware of relevant sections concerning building codes, regulations, and party wall agreements.
• NYC Department of Buildings: Familiarize yourself with permit requirements and procedures.
• NYC Housing Maintenance Code: For co-ops, understand the code’s implications.

Common Pitfalls to Avoid:

• Verbal Agreements: Never rely on verbal agreements. Everything must be in writing.
• Insufficient Detail: Vague agreements lead to disputes.
• Inadequate Insurance: This is a major risk. Verify insurance coverage independently.
• Unreasonable Demands: Avoid making unreasonable demands, as this can hinder negotiations.
• Failure to Document: Thoroughly document the condition of both buildings before and after the work.

Best Practices:

• Proactive Communication: Maintain clear communication with the neighboring building.
• Professionalism: Maintain a professional and respectful demeanor.
• Timely Execution: Execute the license agreement well in advance.
• Record Keeping: Keep detailed records.

Conclusion:

Inter-building licenses in NYC require careful consideration. Protecting your building is the priority. By understanding the legal requirements, following best practices, and consulting with legal counsel, board members and property managers can navigate these complex situations effectively, minimizing risk and ensuring the long-term integrity of their building.