Discharging a s106 Agreement: What You Need to Know

As a property developer, you may have come across s106 agreements during the planning process. In essence, these agreements are legal obligations imposed on developers by the local planning authority to ensure that specific community needs are addressed as a result of the development. Discharging a s106 agreement means fulfilling these obligations, allowing for the development to be completed and occupied.

Here are the key things you need to know about discharging a s106 agreement:

1. Understanding the s106 agreement

Before discharging a s106 agreement, it is crucial to understand its contents. Typically, these agreements stipulate what the developer must do to mitigate the impact of the development on the local area. For instance, the developer may be required to contribute towards affordable housing, public transport, or community facilities like schools and parks. Understanding the contents of the agreement helps you to identify what you need to do to discharge it.

2. Fulfilling the obligations

To discharge a s106 agreement, you must fulfill all the obligations outlined in it. This may involve making payments towards community infrastructure, providing affordable housing units, or upgrading transport links. The obligations may vary depending on the development and the area where it is located. It is important to keep records of all the activities and payments made to fulfill the obligations.

3. Applying for discharge

Once you have fulfilled the obligations, you can apply for discharge of the s106 agreement. This involves submitting an application to the local planning authority, which will then consider your request. The authority will review the evidence provided to ensure that all obligations have been fulfilled, and then issue a discharge notice if everything is in order.

4. Timing of discharge

The timing of discharge will depend on the agreement and the obligations contained therein. Some obligations may be discharged before the completion of the development, while others may require ongoing payments or activities. It is important to keep track of the timeline for discharging the agreement to avoid delays in completing the development.

5. Consequences of non-compliance

If you fail to fulfill the obligations contained in the s106 agreement, you may face legal consequences. The local planning authority can take enforcement action, which may include fines or even halting the development. It is, therefore, crucial to take the s106 agreement seriously and ensure that all obligations are fulfilled.

In conclusion, discharging a s106 agreement requires a thorough understanding of the obligations contained therein and a commitment to fulfilling them. It is crucial to keep records of all activities and payments made towards fulfilling these obligations to ensure that the discharge process goes smoothly. Failure to comply with the s106 agreement can lead to legal consequences, so it is essential to take it seriously. By fulfilling your obligations, you can complete your development and help to enhance the community where it is located.