What Is Section 75 Agreement In Scotland

A Section 75 agreement, sometimes referred to as a planning obligation, is a contract between a landowner and the City Council as part of the plan application process. The agreement may restrict land use and/or regulate field activities to be developed. The agreement may also require the landowner to make a financial contribution to the Commission that must be used for section 75 purposes. If the landowner has a mortgage on the land, the lender must agree to Section 75 before the end of the contract. A landlord must ensure that the Section 75 contract is not contrary to the terms of the mortgage and, in certain circumstances, the lender may require that the mortgage be paid. After the conclusion, a section 75 contract is registered against landowner ownership. The Section 75 agreement is only discharged if the financial contribution is paid or the planning obligation is met. We conduct due diligence, including advice to funders and land buyers in the event of a potential liability risk in the event of an existing Section 75 agreement. We also help minimize planning risks by negotiating specific guarantees and compensations and organizing distribution interviews on behalf of our clients. What is a Section 75 agreement? In principle, it is a contract concluded by the owner of the land and the municipal administration as part of the procedure for requesting a plan.

Such agreements may be: when entering into a Section 75 agreement, the financial obligations of the landowner can be a costly surprise if they are not taken into account when submitting the development application. It is also important that the agreement be linked to the country in accordance with Section 75, so that the conclusion of such an agreement will have significant consequences. As with any contract, it is important that you speak to your lawyer as quickly as possible to navigate the process if you are asked to enter into a Section 75 agreement as part of your planning application. Your lawyer is in the strongest position to negotiate more favorable terms to the agreement, terms that will be less painful for future owners of the property, which will facilitate the sale of the property in the future, or tastier commitments for your lender, so that your mortgage will not have to be repaid before the start of development. It is in Scotland that they are produced most often (but not exclusively) under Section 75 of the Town and Country Planning (Scotland) Act 1997. The Section 75 agreements are broadly in line with the “Section 106 agreements” in England and Wales. We have expertise in order planning. Section 75 agreements are subject to stricter legal requirements than a standard bargaining agreement. They must limit or regulate land development or use and meet the Scottish Government`s circular tests.

Each planning authority has its own negotiating approach and its own preferred formulation. Traditionally, a planner must contact several internal and external consultants to determine if a planning obligation is required in accordance with the planning policy. In the 32 local authorities in Scotland, there are many approaches to how planning agreements are concluded, with examples of good and bad practices. Like what. B in the commission`s reports, there may sometimes be little clarity on the amount of contributions due and the payment dates associated with them. This means that once the planning committee intends to grant the building permit, subject to the conclusion of a legal agreement, there may be extensive negotiations and disagreements on its terms, resulting in delays. If you have applied for development for a new property and have been asked to enter into a Section 75 agreement, it is important that you have legal advice as soon as possible.