Section 106 Agreements

Section 106 agreements (commonly known as S106 agreements) are a type of planning obligation or legal agreement between a developer and the planning authority, or sometimes unilateral undertakings offered by the developer. These agreements are established to ensure that additional works associated with a development are carried out, and they are typically linked to a planning permission to make a development acceptable that would otherwise be considered unacceptable in planning terms.

S106 agreements are primarily used to offset the associated impacts of development. The contributions made under these agreements often fund local services and infrastructure improvements, such as transportation upgrades, educational facilities, and environmental enhancements.

Importantly, a Section 106 agreement is tied to the land itself, rather than to the individual or organisation responsible for the development. This means that any future purchaser must consider the obligations under the S106 agreement when evaluating or purchasing the property and / or land.

Whilst a Section 106 agreement can be modified or discharged after it has been signed, the process can often be challenging. It is therefore advisable to seek assistance from a qualified planning professional to navigate these negotiations effectively. If you are being asked to complete a S106 agreement, or require professional advice about an existing S106 agreement, Arena Global Management can provide you with the necessary support to help facilitate the process.