What is a section 106 agreement?
Section 106 (S106) Agreements are legal agreements between Local Authorities and developers; these are linked to planning permissions and can also be known as planning obligations.
What is a 106 Agreement when buying a house?
Buying a house under section 106 means that the property in question has a type of ‘restrictive covenant’ in place, which is a legally binding contract usually set by the local council to facilitate an affordable housing scheme.
Is a section 106 agreement a local land charge?
The planning obligations within a S106 Agreement are automatically registrable as local land charges within the public registers maintained by the local authorities.
How long is a section 106 agreement valid for?
five years
By Application An application for modification or discharge of s106 agreement can be made to the local planning authority after the expiry of the ‘relevant period’, and the “relevant period” is defined as five years since the beginning with the date that the s106 agreement is entered.
How long does a Section 106 last?
Under the Planning Act s106 (A) a person bound by the obligation can seek to have the obligation modified or discharged after five years.
How long does a Section 106 agreement take?
Most LPAs take time to deal with Section 106 viability reports; the vetting and negotiation process is unlikely to be complete in less than 8 weeks. It is therefore important to begin addressing this as soon as possible in the planning process.
Who can enforce a section 106 agreement?
TCPA 1990, s 106(3) provides that the LPA identified in the section 106 agreement as the LPA by whom the obligation is enforceable can use its discretion as to enforcement. Importantly, a section 106 agreement can only be enforced by the relevant LPA, not by members of the public or interested parties.
Can a Section 106 agreement be removed?
Can Section 106 Obligations Be Removed? Yes, but it will be resisted. LPA’s are asked to vary S106 agreements but are reluctant hence their desire not to agree in the first instance until the full detail of the scheme is known. Hence, it’s important to ‘get it right’ in the first instance.
