The following Planning Q&A produced in partnership with Sarah Fitzpatrick of Norton Rose Fulbright provides comprehensive and up to date legal information covering:
A section 106 agreement is a contract entered into under statutory powers pursuant to section 106 of the Town and Country Planning Act 1990. It must be entered into by deed. It is, nonetheless, a contract between parties and the terms of the contract will govern both the payment and repayment of financial contributions. A developer has no statutory right to repayment of section 106 contributions, so it must be specifically negotiated as a term of the contract.
A section 106 agreement will usually include two principal obligations on a local planning authority (LPA) to repay contributions. These are as follows:
in circumstances where the planning permission has been quashed, revoked, modified or varied (except with the developer’s consent), or has expired prior to implementation/commencement
if the contribution has not been spent or committed for expenditure within X y
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