Section 106 Agreement Process

If you`re involved in property development, then you may have heard of the section 106 agreement process. This process is a crucial part of the planning permission process and can have a significant impact on the development of a property.

So, what is a section 106 agreement?

A section 106 agreement is a legally binding agreement between a developer and the local planning authority. It is designed to mitigate the impact of a development on the local area and community. The agreement can include a range of obligations, such as the provision of affordable housing, the construction of highways, and contributions to education and healthcare facilities.

The section 106 agreement process

The section 106 agreement process typically starts when a developer submits a planning application to the local planning authority. The authority will then assess the application and determine whether it is suitable for development.

If the authority grants planning permission, it may attach conditions to the permission, including the requirement for a section 106 agreement.

The developer and planning authority will then negotiate the terms of the agreement. This can include the amount of financial contributions the developer will make, the type of infrastructure and facilities they will provide, and the timescale for delivery.

Once both parties have agreed to the terms, the agreement will be signed and become legally binding. The developer will then be required to comply with the terms of the agreement throughout the development process.

The importance of section 106 agreements

Section 106 agreements are an essential part of the planning permission process. They help to ensure that developers take responsibility for the impact their developments have on local communities and the environment.

These agreements can also provide benefits to developers, such as reduced objections from local residents and a clearer understanding of the obligations and costs associated with their development.

In conclusion, the section 106 agreement process is a vital part of the development process. If you`re involved in property development, it`s essential to understand the requirements and obligations of section 106 agreements and work closely with the local planning authority to negotiate the best possible terms.