When it comes to property development, it`s essential to be aware of the legal agreements that govern the process. One such agreement that developers need to familiarize themselves with is the Section 106 agreement.
What is a Section 106 agreement?
A Section 106 agreement is a legal agreement between a developer and the local planning authority. It is a condition of planning permission that ensures that the developer provides some form of benefit to the local community. This can come in the form of affordable housing, public open space, or financial contributions towards education or infrastructure upgrades.
Why change a Section 106 agreement?
There may be times when a developer needs to revisit a Section 106 agreement. This could be due to a change in circumstances, such as a reduction in the developer`s funds or a change in market conditions. Alternatively, the local planning authority may request a change if they feel that the agreed-upon benefits are not being delivered or if there is a need for additional benefits.
How to change a Section 106 agreement?
To change a Section 106 agreement, the developer and the local planning authority must come to an agreement. This may involve negotiations to determine what changes need to be made and what benefits will be provided instead. The process can take time and may involve legal assistance to ensure that all parties are protected.
It`s important to note that any changes to a Section 106 agreement must be agreed upon before the development is complete. Failure to provide the agreed-upon benefits can result in legal action from the local planning authority and can have a significant impact on the developer`s reputation.
In conclusion, a Section 106 agreement is an essential legal agreement in property development. If a change is required, it`s crucial to approach the process with care and to work closely with the local planning authority to ensure that all parties are satisfied with the outcome. A successful change to a Section 106 agreement can benefit both the developer and the local community.