Who Needs to Be a Party to a Section 106 Agreement

Section 106 agreements play an important role in the planning process in England and Wales. These agreements, also known as planning obligations, are used to mitigate the impact of development on the community and the environment. They are often required as a condition of planning permission being granted.

But who needs to be a party to a section 106 agreement? In short, anyone who has an interest in the land and the development. This may include the developer, the local authority, and any third parties who may be affected by the development.

Let`s take a closer look at each of these parties and their role in section 106 agreements.

The Developer

The developer is the party responsible for carrying out the development and is therefore a key party to the section 106 agreement. They will be required to enter into the agreement as a condition of planning permission being granted.

The provisions of the agreement will typically relate to the developer`s obligations to provide certain infrastructure or facilities to mitigate the impact of the development. This could include contributions towards new schools, healthcare facilities, or affordable housing.

The Local Authority

The local authority is responsible for granting planning permission and enforcing the provisions of the section 106 agreement. As such, they will also be a party to the agreement.

The local authority`s role is to ensure that the developer meets their obligations under the agreement. This might involve monitoring the development and requesting evidence of compliance with the agreement.

Third Parties

Third parties who may be affected by the development may also be parties to the section 106 agreement. This could include neighbouring landowners, community groups, or environmental organisations.

If a third party is to be a party to the agreement, they will need to have a legal interest in the land or development. This could include a leasehold interest, a right of way, or an easement.

The provisions of the agreement relating to third parties will typically relate to the mitigation of the impact of the development on their land or interests. This might include measures to reduce noise or traffic, or compensation for loss of amenity.

In conclusion, anyone with an interest in the land and the development may need to be a party to a section 106 agreement. This could include the developer, the local authority, and any third parties who may be affected by the development. The provisions of the agreement will typically relate to the mitigation of the impact of the development and will be enforced by the local authority.