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Section 106 agreements

Commercial solicitors, who act on behalf of developers in negotiating the buying of land, and the subsequent obtaining of planning permission, may become involved in setting up and implementing Section 106 agreements.

These legal contracts have become more common as local authorities realise the value of allowing developments in a certain area over which they have control and, at the same time, the community can benefit from extra services either paid for or provided by the builder.

The type of situations where a Section 106 agreement is offered or proposed include where the development or use of land is to be restricted, where planning permission will only allow certain activities to take place or where a sum of money will be paid to the council for a specific purpose.

Most schemes fall into this last category and can often include financing of parks, road improvements, public transport or other facilities to benefit council taxpayers in the area around the development.

Although mostly associated with large housing developments, Section 106 agreements can be used to set out legal requirements such as residential permission for mobile homes being restricted to holiday use or a granny annexe to be used only as an adjunct to a main house and not a self-contained dwelling.

Drafting a Section 106 agreement is a task for an experienced commercial property solicitor, such as those at George Ide LLP, whose lawyers will be fully aware of a client’s needs yet have a good relationship with the planning authority so that a good compromise can be reached to benefit all concerned.

The firm’s business services legal team can help with a wide range of planning matters, including appeals and public inquiries, and, where a Section 106 agreement is already in place, can advise on the potential for its modification or removal of the obligation.

From our North Street Chichester offices, George Ide is able to assist developers and individuals with planning law advice and representation throughout the UK, West Sussex and Hampshire.

For more information about the commercial property litigation services, call our offices or click on the name of a solicitor on this page.