The Law Society Section 106 Agreement: What You Need to Know

If you`re involved in property development or planning, you may have heard of a Section 106 Agreement. This is a legal document that`s becoming more and more important in the UK planning process, and it`s something that all developers and planners need to be aware of.

So, what is a Section 106 Agreement, and what does it mean for you?

What is a Section 106 Agreement?

A Section 106 Agreement, also known as a `planning obligation`, is a legal document that`s entered into between a developer and a local authority. It`s designed to mitigate the impact of a development on the surrounding area, and to address any potential issues that might arise.

The most common types of Section 106 Agreements relate to affordable housing, education, and transport. For example, a developer might agree to provide a certain number of affordable homes as part of a development, or to contribute towards the cost of a new school or road.

Why are Section 106 Agreements important?

Section 106 Agreements are important because they ensure that developers take responsibility for the impact of their development on the local area. They also help to ensure that the necessary infrastructure and services are in place to accommodate new residents.

In addition, Section 106 Agreements can be a way for developers to secure planning permission for their development. For example, if a local authority is concerned about the impact of a development on the local community, they might require a Section 106 Agreement as a condition of granting planning permission.

What does the Law Society have to say about Section 106 Agreements?

The Law Society has published guidance on Section 106 Agreements, which is designed to help solicitors and developers understand the legal and practical issues involved.

According to the Law Society, it`s important for developers to engage early with the local authority and other stakeholders, in order to identify any potential issues and negotiate the terms of the Section 106 Agreement. This can help to avoid delays and ensure that the final agreement reflects the needs of all parties.

The Law Society also recommends that developers seek professional legal advice when negotiating a Section 106 Agreement, in order to ensure that the agreement is legally binding and enforceable.

In conclusion, Section 106 Agreements are an important part of the UK planning process, and developers and planners need to be aware of their legal and practical implications. If you`re involved in property development or planning, it`s important to seek professional advice and engage with the local authority and other stakeholders to negotiate a Section 106 Agreement that reflects the needs of all parties.