Section 106 Agreement

Local planning authorities have powers under section 106 of the Town and Country
Planning Act 1990 to enter into agreements – known as ‘planning obligations’ – for the purpose of restricting the development or use of land, or securing certain necessary benefits related to the development, such as the provision of a new road, public open space or other facilities.

The associated planning permission will be valid only if the agreement is complied with. It is important, as part of the conveyancing process that potential buyers should be made aware of any section 106 agreements, especially any conditions not yet fulfilled.