31 décembre 2021

When Does a Section 106 Agreement Expire

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When Does a Section 106 Agreement Expire: Everything You Need to Know

A Section 106 agreement, also known as a planning obligation, is a legal agreement between a developer and the local planning authority (LPA). It outlines the commitments that the developer must make towards the local community as part of the planning permission process. These commitments can include things like affordable housing, community facilities, or infrastructure improvements.

But what happens if a developer fails to meet these commitments or if the commitments are not required anymore? In this article, we will go over when a Section 106 agreement expires and what it means for developers, LPAs, and the local community.

The Expiry Date of a Section 106 Agreement

A Section 106 agreement will typically have an expiry date, which is agreed upon during the negotiations between the developer and the LPA. This date is set based on the time it is expected to take for the developer to complete the agreed-upon commitments.

If the developer fails to complete the commitments by the agreed-upon expiry date, they may be in breach of the agreement. In this instance, the LPA can take enforcement action to ensure the commitments are met. This can include issuing a breach of condition notice or revoking the planning permission altogether.

Extensions of the Expiry Date

In some cases, a developer may need more time to complete the commitments outlined in the Section 106 agreement. If this is the case, they can apply for an extension of the expiry date. The LPA will consider the request and may grant an extension if they believe it is justified.

It`s important to note that an extension of the expiry date does not change the commitments outlined in the Section 106 agreement. The developer is still obliged to meet these commitments, but they will have more time to do so.

Termination of a Section 106 Agreement

A Section 106 agreement can also be terminated if the commitments outlined in the agreement are no longer required. This could happen if the development plans change, or if the LPA`s priorities change over time.

In this case, the LPA and the developer can agree to terminate the Section 106 agreement. This would mean that the developer would no longer be required to meet the commitments outlined in the agreement. However, any obligations that have already been met must be fulfilled before the termination of the agreement.

What Does This Mean for Developers, LPAs, and the Local Community?

For developers, it`s important to be aware of the expiry date of a Section 106 agreement and to ensure that all commitments are met before that date. Extensions of the expiry date can be applied for, but these should be used sparingly and only when justified.

For LPAs, it`s important to monitor the progress of developers and take enforcement action if necessary. If the commitments outlined in the Section 106 agreement are no longer required, LPAs can agree to terminate the agreement.

For the local community, a Section 106 agreement can provide important benefits, such as affordable housing or community facilities. It`s important to be aware of the commitments outlined in the agreement and to hold developers and LPAs accountable if they fail to meet these commitments.

Conclusion

A Section 106 agreement is a crucial part of the planning permission process. It outlines the commitments that developers must make towards the local community and can provide important benefits. Understanding when a Section 106 agreement expires and what it means for developers, LPAs, and the local community is key to ensuring that these commitments are met and that the planning process is fair and transparent.

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