Q&As

Is an option agreement entered into by a landowner and a developer a legal interest for the purpose of a section 106 agreement? Will a put option and a call option be treated in the same way?

read titleRead full title
Copyright © 2025 LexisNexis
Produced in partnership with Rosalind Andrews of Harrison Clark Rickerbys
Published on: 22 March 2021
imgtext

Section 106 agreements are agreements between landowners, local planning authorities (LPAs), and other relevant parties which seek to provide mitigation to overcome planning objections to proposals and make the development acceptable in planning terms. Further information regarding section 106 agreements can be found in Practice Note: Planning obligations—key points.

Section 106(1) of the Town and Country Planning Act 1990 (TCPA 1990) (as amended) provides that section 106 agreements may be entered into by 'any person interested in land'.

There is no definition of an 'interest in land' for the purposes of TCPA 1990, s 106, however the case of Southampton CC v Halyard Ltd confirmed that 'interest in land' meant that a proprietary interest in the land was required.

Conditional contracts, call options, put options, and promotion agreements are all structured differently, and so whether a proprietary interest

Rosalind Andrews
Rosalind Andrews

HCR Law

Rosalind Andrews is Head of Planning & Highways Law at Harrison Clark Rickerbys solicitors, covering the firm’s nine offices. She specialises in Planning and Highways Law, and advises on a range of contentious and non-contentious planning matters, including strategic planning advice, judicial review and other Planning Court challenges, and planning enforcement issues. She acts on behalf of a variety of clients, with particular experience of acting for developers and promoters in relation to residential development. She also acts on behalf of lenders, registered providers of affordable housing, and local authorities, as well as third parties with an interest in the planning process, such as local residents' groups. As well as negotiating Section 106 Obligations and other infrastructure agreements, she also advises on other matters affecting development, such as town and village greens, public rights of way, assets of community value, tree preservation orders, and compulsory purchase. 

Read moreRead more
Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Put option definition
What does Put option mean?

A put option gives the buyer the right (but not the obligation) to sell an asset on (and sometimes before) a given date at a price agreed today. The seller (writer) of the option has the obligation to buy the underlying asset at that price if the option is exercised.

Read more readmore

Popular documents

Precedent s 106 deed of indemnity

Precedent s 106 deed of indemnityAGREEMENTrelating toliabilities arising from an agreement made under section 106 of the Town and Country Planning Act 1990 [and [insert other legislation]] in relation to the development at [insert address]This Agreement is made on [insert date]Parties1[insert name]

What is a section 111 agreement?

What is a section 111 agreement?Section 111 agreements are agreements entered into with a local authority under section 111 of the Local Government Act 1972 (LGA 1972).LGA 1972, s 111, entitled ‘subsidiary powers of local authorities’, is a catch all provision which gives local authorities power to

If a personal planning permission has been granted authorising the change of use of a property, what

If a personal planning permission has been granted authorising the change of use of a property, what happens when the named individual vacates? Does the property revert to its previously authorised planning use?The general rule under section 75 of the Town and Country Planning Act 1990 (TCPA 1990)

Can a Grampian condition be imposed in respect of works which require Planning Permission in their own

Can a Grampian condition be imposed in respect of works which require Planning Permission in their own right?Grampian conditions and planning permissionSection 70 of the Town and Country Planning Act 1990 states that a local planning authority:'…may grant planning permission, either unconditionally