Jurisdiction(s):
United Kingdom

Due diligence on section 278 and section 38 highways agreements: adoption, financial liabilities and buyer protections (England and Wales)

Published by a LexisNexis Planning expert

Checklists

How are section 278 and section 38 agreements revealed?

Check the outcome of the local search and the seller’s replies to enquiries. A section 278 agreement will only be registrable as local land charges if:

it has been entered into pursuant to an obligation in a s 106 agreement; or
the highway authority (HA) has declared that there has been a financial default under the agreement.

Section 278 agreements

Section 278 agreements are used where a developer requires off-site work (other than simple access) to be carried out to a highway. The HA may design and construct the highway works at the developer’s expense. Alternatively, the agreement can appoint the developer as the HA’s agent to undertake the works, in which case a bond must support the agreement. If the developer carries out the works, a certificate of practical completion is issued once the HA engineer is satisfied that the works are complete. Following successful completion of a 12-month maintenance period, a certificate of final completion is issued and the road can then be adopted...

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Web page updated on 20/05/2026

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