Section 106 Agreement (Planning Obligation)
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England and WalesCost
Free to useRelevant sectors
Type of legal document
🏷️ Section 106 agreementBusiness activity
Enter into a planning obligationA Section 106 agreement is a legal agreement between a developer and a local planning authority that sets out the obligations of the developer in relation to a planning permission. The agreement can cover a wide range of matters, including the provision of affordable housing, the funding of infrastructure improvements, and the mitigation of the impacts of the development.
The purpose of a Section 106 Agreement is to ensure that the developer provides certain amenities, infrastructure improvements, or financial contributions that address the negative effects of the planned development. These contributions could include the provision of affordable housing units, the construction or improvement of public spaces, the creation of educational or medical facilities, the upgrading of road networks or public transportation, or measures to enhance environmental sustainability.
The contents of a Section 106 Agreement are determined through negotiations between the local planning authority and the developer. The agreement must be proportionate and directly related to the proposed development, aiming to balance the impact of the project with the needs and aspirations of the local community.
Typically, a Section 106 Agreement sets out specific obligations, timeframes, and conditions that the developer must fulfill. It also includes provisions on monitoring and enforcement mechanisms to ensure compliance. The local planning authority retains the right to review and amend the agreement in case of significant changes in circumstances or if the developer fails to meet the agreed obligations.
It is important to note that Section 106 Agreements are legally binding and enforceable. Failure to comply with the agreed terms may result in penalties, project delays, or even the withdrawal of planning permission. As such, this legal template provides a framework for both local planning authorities and developers to negotiate and formalize commitments that aim to enhance the overall well-being of the community affected by the proposed development project.
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