Section 106 agreement meaning

Planning conditions and planning obligations often limit both what development may take place and the way it is carried out on the land or buildings to which they apply. See Practice Notes: Planning conditions—key points and Planning obligations—key points. Planning obligations Agreements made under section 106 of the Town and Country Planning Act 1990 (commonly called section 106 agreements, or planning obligations) control the use of land and bind successors in title. They are recorded as local land charges. The agreement should specify the land it binds by reference to an attached plan, which will usually mirror the planning application site boundary for the related development. A section 106 agreement is typically concluded before the decision notice granting planning permission is issued. How are planning obligations revealed? Review the outcome of the local land charges search (LLC1). Planning obligations are registrable as local land charges. From 12 April 2015, HM Land Registry has responsibility for the local land charges register. Transitional provisions permit HM Land Registry...

This Checklist offers a concise overview of the main statutory and practical issues in drafting and negotiating planning obligations under section 106 of the Town and Country Planning Act 1990 (TCPA 1990), more commonly known as section 106 agreements. For more detailed guidance on: the principal statutory requirements for planning obligations—covering formalities, relevant parties, registration formalities, when obligations become effective, and dispute resolution processes—see Practice Note: Planning obligations—key points how to prepare a section 106 agreement in line with statutory criteria while achieving practical efficiency—see Practice Note: Drafting section 106 agreements—practical advice for developers how to renegotiate a section 106 agreement—see Practice Note: Renegotiating planning obligations/section 106 agreements Have the statutory requirements been fulfilled? If the requirements of TCPA 1990, s 106 are not met, the obligations set out in the agreement may not constitute a 'planning obligation', with the result that the local planning authority (LPA) might be unable to enforce those obligations against successors in title to the...

The requirement for planning use swaps can emerge when a planning proposal would diminish residential floor space and the local planning authority (LPA) insists that a linked application is lodged to secure a proportionate re-provision of residential space in a different location. This is ordinarily pursued to ensure an equivalent level of residential provision is secured elsewhere through a connected scheme. Frequently, two distinct developers are engaged in a use swap. One applicant seeks consent for works or a change of use that results in the loss of dwellings (Developer A), whilst another brings forward a connected application to deliver residential accommodation in another part of the area (Developer B). A planning use swap agreement records the basis on which the swap proceeds. For further details, see Practice Note: Planning use swaps. Does the planning use swap agreement include the relevant parties? As an agreement under section 106 of the Town and Country Planning Act 1990 (section 106 agreement) is commonly needed before the LPA will...

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Arun District Council—BEW Parcel SC1, Barnham On 21 July 2025, Arun District Council resolved to approve planning consent for a new scheme comprising 1,250 dwellings (with related infrastructure) in Barnham. The proposal put forward 15% affordable housing alongside reduced education contributions, both justified on viability grounds. Under the Council’s Local Plan, major sites are expected to deliver 30% affordable housing. At the time, the authority’s housing land supply stood at 3.4 years. The Officer’s Report concluded that this shortfall rendered the Local Plan out of date for decision‑making, and, in that context, recommended approval. That approval was made conditional on a satisfactory Section 106 agreement, with the Council depending on the inclusion of an upwards‑only review clause. This mechanism secured continuing reassessment of the affordable housing provision over the course of delivery and, where viability improved in future, required the developer to increase its affordable housing contribution accordingly. In practice, local planning authorities are increasingly relying on such viability review clauses within Section 106 agreements to address shortfalls in...

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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Schedule of amendments A compiled list of changes to a standard form contract in which the parties record their agreed departures from the issued terms. Accordingly, it should be read alongside the underlying standard form. The parties should ensure any negotiated and agreed schedule of amendments is duly incorporated into the contract. Within NEC3/NEC4 suites, such alterations to the standard form are known as Z clauses. Refer to Practice Notes: Construction contract documents and Selection of standard form construction contracts, and to our relevant Precedent schedules under the Precedents tab in subtopics: JCT contracts 2024—overview, JCT contracts 2016, JCT contracts 2011, NEC contracts and Other standard form construction contracts. Schedule of rates/prices A schedule used in tendering when precise quantities are not established, or within a lump sum arrangement for pricing variations (often termed a Bill of Quantities). The tenderer...

Where a developer, for whatever reason, does not fulfil its duties under an agreement made or binding on it pursuant to section 106 of the Town and Country Planning Act 1990 (TCPA 1990) (a planning obligation/section 106 agreement), the relevant local planning authority (LPA) may take steps to secure performance of the obligations contained in the section 106 agreement and to ensure compliance with its terms and requirements. On recognising that it cannot meet an obligation in a section 106 agreement, the developer should promptly engage with the LPA and seek to discharge or vary the obligation. For instance, it could propose a reduced or otherwise amended contribution, or negotiate a later trigger date for payment, delivery or compliance. See Practice Note: Renegotiating planning obligations/section 106 agreements. If that is not achievable, and the developer fails to comply with an obligation in a section 106 agreement, the LPA has discretion in deciding whether, and how, to enforce a planning obligation. The courts show a general readiness to enforce section 106...

What is a restrictive covenant? A restrictive covenant is a binding promise attached to land that limits how the owner may use it. See Practice Note: Restrictive covenants-nature and characteristics. The covenantee, or beneficiary, is the person who owns the benefitting land and enjoys the restriction’s advantage. The beneficiary is commonly the party resisting any release or alteration (though not invariably-see below). The covenantor, or burdened owner, is the person who owns the land subject to the restriction and bears its burden. The burdened owner is often the party seeking a release or change (though not invariably-see below). This Practice Note uses the terms ‘beneficiary’ and ‘burdened owner’ rather than ‘covenantee’ and ‘covenantor’ to recognise that ownership of the land may have changed since the covenant was created. How to discharge or modify a restrictive covenant There are two principal routes to discharge or modify a restrictive covenant, considered in detail below: express release (the non-statutory route) application to the...

This Agreement is entered into on [ insert date ] of [ insert month ] [ insert year ] by and between: [ insert name ], of [ insert address ] (' Council '); [ insert name ], of [ insert address ] (' County Council '); [ insert name ], a company duly incorporated and registered in [ insert details ] under number [ insert details ], whose registered office is at [ insert address ] (' Developer '); [ Additional parties as necessary eg owner, landlord, mortgagee, option holder etc. ] (' [ insert additional parties as necessary eg owner, landlord, mortgagee, option holder etc ] '). Recitals The Council is the local planning authority for the purposes of section 106 of the 1990 Act for the area within which the Land is situated and is the body by whom the obligations contained in this Deed are enforceable. The County Council is the local highway...

Date [ date ] Parties [ name of (first) Owner ] [ and [ name of second Owner ] ] [ [ both ] of OR incorporated in England and Wales (company registration number [ number ]) having its registered office at ] [ address ] ( [ together ] Owner ) [ name of Promoter ] [ of OR incorporated in England and Wales (company registration number [ number ]) having its registered office at ] [ address ] ( Promoter ) 1 Definitions In this Agreement, the following expressions shall have these meanings: [ Adverse Rights • any easement, covenant, right or other interest in or over the Property, the release, discharge or alteration of which is reasonably required in order to: (a) achieve the Objective; or (b) facilitate the Development; ] [ Adverse Rights Agreement • any instrument giving legal effect to the release, discharge or alteration of an Adverse Right; ] ...

1 Definitions In this Agreement, the following terms apply: Actual Completion Date – the date on which the Lease is granted. Approval – permissions or licences required for the Seller’s Works by Legislation or a Competent Authority. Competent Authority – any statutory or Royal Charter body, or a utility service or supply company. Completion Date – the specified working day after service of the Completion Notice, or a named date. Completion Money – the Price less the deposits [and any Incentive], plus any agreed sums such as the Contents Price. Deposit – the stated percentage of the Price, with credit for any Initial Deposit. Interest Rate – a stated percentage above the named bank’s base rate. Lease – the lease in the form attached at Appendix 4. Legislation – UK Acts, orders, regulations, consents, licences, notices and bye laws, and approved codes of practice. Ready for Occupation – the Property is complete for safe access and use,...

Section 106 agreements (section 106 of the Town and Country Planning Act 1990 (TCPA 1990)) These provisions enable any person with an interest in land to, ‘by agreement or otherwise’, enter into obligations under TCPA 1990, s 106(1)(a) to (d), which may: limit or control the development or use of the land require that specified operations or works are carried out stipulate that the land is used in a particular way require payment of a sum or sums to the authority As s 106 allows obligations to be given ‘by agreement or otherwise’, they may equally be created by a unilateral undertaking, rather than solely through an agreement. This note considers both mechanisms and their effect in practice. For either an agreement or a unilateral undertaking to bind all interests in the land, everyone holding an interest must be joined as a party to the agreement, or must join in the unilateral undertaking, as appropriate. In either event, the local...

LPA’s obligations when imposing financial contributions Developers are frequently obliged to make monetary payments to the local planning authority (LPA) to fund defined projects, helping to offset the harmful effects of a scheme and thereby enable the grant of planning permission. This Q&A addresses circumstances where the section 106 agreement contains no specific express clawback mechanism. When a planning obligation (a section 106 obligation) is proposed to secure a financial contribution at the determination stage of a planning application, that contribution must satisfy the stringent legal tests in regulation 122 of the Community Infrastructure Levy Regulations 2010, SI 2010/948 (SI 2010/948, reg 122) (as amended). Only by meeting those tests can any such payment lawfully and ultimately underpin the grant of planning permission...

Payment in instalments Section 106 of the Town and Country Planning Act 1990 (TCPA 1990) establishes a process enabling a developer to enter planning obligations with a local planning authority, intended to lessen the impacts arising from a proposed development...