What are Legal Agreements?
A new development may place extra pressure on the social, physical and economic infrastructure which already exists in a certain area. A planning obligation will aim to balance the pressure created by the new development with improvements to the surrounding area ensuring that where possible the development would make a positive contribution to the local area and community.
The terms ‘planning agreement’, ‘planning obligation’, ‘unilateral obligation’ and ‘planning gain’ are often used interchangeably.
The terms known as a Section 106 Agreement is the overarching legal agreement which results from the planning obligations process. Planning gain is a generic term to describe the community benefits achieved through this process.
A planning obligation is a legally binding document which enables a local planning authority to secure matters such as the provision of infrastructure, services or contributions towards them to support development.
Planning obligations can take the form of either bi-lateral agreements or unilateral undertakings, both of which are entered into under Section 106 of the Town and Country Planning Act 1990.
We usually requires all parties with an interest in the land forming the application site to enter into planning obligations. For example, if the land to which the proposal relates is mortgaged or charged to third parties or if a developer has an option agreement, it will be necessary for such interests to be party to the planning obligation.
We strongly recommend applicants liaise as early as possible with interested parties about their proposals to avoid delays.
Planning obligations are registered as Local Land Charge and are typically enforceable against the parties who have entered into the planning obligation as well as any subsequent successors in title.