Section 106 agreements are commonly seen when a care home is built or extended and are an important aspect of the planning permission process. Tom Lumsden, partner at CooperBurnett LLP, explains when and how they should be used
Section 106 of the Town and Country Planning Act 1990 (TCPA 1990) relates to planning obligations, which assist in mitigating the impact of unacceptable development to make it acceptable in planning terms. Section 106 of the TCPA 1990 provides that any person with an interest in the land can, by agreement or unilaterally, sign an obligation that may:
These applications are normally required by a local planning authority as a conditionof, and before, it grants planning permission. Developers should not rush into planning obligations without considering their impact carefully, as once signed they will remain as a charge on the land and will bind successors in title.
A section 106 agreement can only constitute a reason for granting planning permission if the planning obligations are:
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