If your neighbor is planning construction and needs access to your property, you’re entitled to more than just a handshake agreement. Here’s what you should know.
What Is a Construction License Agreement?
In New York City, where buildings sit just inches apart, it’s not uncommon for a property owner to need access to their neighbor’s land during construction. Whether it’s for staging materials, installing protective scaffolding, or reaching a shared wall, this type of access usually requires a construction license agreement.
This agreement is a formal document that gives the developer temporary rights to enter or use part of your property. It spells out the scope of the work, the duration of access, safety measures, restoration requirements—and crucially, the license fee you’ll be paid.
Under RPAPL Section 881, if both parties can’t agree, the developer can go to court and ask a judge to grant access. But that doesn’t mean you have to accept whatever they offer. You have the right to fair compensation.
What’s the Average Monthly License Fee in NYC?
There’s no flat rate, but monthly license fees in New York City typically range from $500 to $10,000 or more. It all depends on:
1. How Intrusive the Access Is
Is it just a hanging scaffold over your roof? Or are they blocking off your backyard? The more it affects your space, the higher the fee should be.
2. Loss of Use
If their project limits your ability to use your property—like blocking windows, disrupting outdoor areas, or affecting tenants—you’re entitled to compensation for that impact.
3. How Long the Work Lasts
A quick job may only justify a smaller fee. But if they’re asking for access for 6–12 months or more, that adds up—especially if there are delays.
4. The Risk to You
Construction always brings risk—noise, vibration, liability, even potential damage. Your license fee should reflect the inconvenience and exposure you’re taking on.
How to Negotiate a Fair License Agreement
Never sign anything without reviewing the terms carefully. Developers are often in a rush to move forward, but your property rights—and peace of mind—are too important to overlook.
Before you agree to anything:
- Get legal advice from a construction attorney
- Make sure the agreement includes insurance requirements, indemnity clauses, and restoration obligations
- Include penalties or additional fees if they go over the agreed timeline
- Ensure the license fee reflects both time and impact
We’ve worked with dozens of property owners in NYC to negotiate license agreements that are not only fair—but protect their rights from day one.
Don’t Let Construction Catch You Off Guard
Your neighbor’s project may be out of your control—but how it affects your property isn’t. With the right legal guidance, you can make sure you’re protected and properly compensated.
Need help negotiating a construction license agreement in NYC? Contact us today at www.nyconstructionlaw.com. Our team knows the city, the law, and what your property is really worth.