Section 106 Agreement Scotland

A Section 106 agreement may be amended or discharged and the assistance of a planning expert should be used to help negotiate this process. § 75 Agreements are used when the conditions imposed by the building permit itself are not appropriate. While planning conditions control how a project is built and used, Section 75 agreements generally provide for financial contributions and all requirements affecting land outside the building permit area (outside the “red border”). If the landowner has a mortgage on the property, the lender must give his consent before the agreement is entered into in accordance with section 75. A landowner must ensure that the Section 75 agreement does not violate the terms of their mortgage and, in certain circumstances, the lender may require that the mortgage be discharged. Once concluded, an agreement is registered under Section 75 against the property of the landowners of the property. The agreement provided for in Article 75 shall be complied with only if the financial contribution is paid or if the planning obligation is fulfilled. For the feasibility of a project, it may be essential to understand the impact of the agreements set out in Section 75 and to ensure that they are formulated appropriately. Ultimately, a new form of supply agreement (stand-alone or co-opted in all retained S106 elements) may be required to ensure the application of a portion of the new DSD payment to development infrastructure, social infrastructure and other reductions, including delivery times in accordance with the development agenda. As with any contract, it is important that you speak to your lawyer as often as possible to navigate the trial if you are asked to enter into an agreement pursuant to Section 75. Your lawyer is in the best position to negotiate more favorable terms for the deal, less onerous terms for future owners of the property, the property easier to sell in the future, or bonds that are tastier for your lender, so your mortgage doesn`t have to be paid off until development begins.

Between planning authorities and developers, there will always be differences of opinion on the amount of planning benefits to be paid due to the different objectives of the public and private sectors. The Scottish Government has clarified that planning obligation payments should only be requested if they meet all the policy tests set out in its 2012 circular, i.e. a Section 75 agreement, sometimes referred to as a planning obligation, is a contract between a landowner and the city council. as part of the construction application procedure. An Article 106 agreement must meet the following conditions: planning obligations (known as Article 75 of the Agreement in Scotland and Article 106 of the Agreement in England and Wales) are contracts between a landowner and the planning authority. A planning obligation can be taken at any stage of the planning process, which is most often linked to building permit applications and can include financial contributions for schools, roads, transportation, public space and affordable housing. . .

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