Section 106 Agreement
A legal agreement between a local planning authority and a developer. It is often used to ensure that a developer contributes to the local community in exchange for planning permission. These contributions can take the form of financial payments or other obligations, such as providing affordable housing or public infrastructure.
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Section 106 Agreement – Ensure Compliance with Development Obligations
A Section 106 Agreement is a legally binding contract between a developer and a local planning authority. Under the Town and Country Planning Act 1990, it sets out the developer’s commitments to provide specific benefits—such as affordable housing or infrastructure improvements—in return for receiving planning permission. By codifying these obligations, the agreement ensures that new developments contribute to the broader community.
A Section 106 Agreement made in Bind includes:
Planning Obligations
Describes the developer’s clear commitments, such as providing a set percentage of affordable housing units or improving local facilities. These obligations aim to balance development interests with community needs, ensuring vital resources like housing and public infrastructure are enhanced.
Payment and Timing
Outlines the schedule and conditions under which the developer must deliver financial contributions or complete required tasks. Staged payment arrangements—such as paying a portion at commencement and further instalments upon development milestones—help spread costs and align them with project progress.
Monitoring and Enforcement
Gives the local planning authority the right to oversee the developer’s performance and enforce the agreement if obligations aren’t met. Potential enforcement measures, including fines or withholding future planning permissions, encourage compliance and protect the public interest.
General Obligations
Specifies that the agreement applies to all successors and assigns of the developer, ensuring it remains enforceable even if the land changes hands. It also defines the governing law and states the parties must comply with any documentation requirements, preserving accountability throughout the project lifecycle.
Bind streamlines the creation and signing of Section 106 Agreements, providing a secure digital space where developers, authorities, and landowners can collaborate on compliance and community benefit provisions.
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