Q&As

Where a Council that has entered into a section 106 agreement as the local planning authority subsequently becomes the sole freehold owner of the land in question, does the section 106 agreement remain valid and its obligations enforceable?

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Published on LexisPSL on 19/07/2021

The following Planning Q&A provides comprehensive and up to date legal information covering:

  • Where a Council that has entered into a section 106 agreement as the local planning authority subsequently becomes the sole freehold owner of the land in question, does the section 106 agreement remain valid and its obligations enforceable?

Where a Council that has entered into a section 106 agreement as the local planning authority subsequently becomes the sole freehold owner of the land in question, does the section 106 agreement remain valid and its obligations enforceable?

Agreements made under section 106 of the Town and Country Planning Act 1990 (TCPA 1990) can be entered into between a landowner and the local planning authority (LPA), to enable planning obligations to be given by the landowner to the LPA to make the proposed development acceptable in planning terms and enable the grant of planning permission. Further information regarding section 106 agreements can be found in Planning obligations (section 106 agreements)—overview.

If the landowner subsequently sells the land, by virtue of TCPA 1990, s 106(3)(b), the obligations contained in the section 106 agreement against the landowner become enforceable against the buyer, as they are deriving title from the landowner. However, what happens if the successor in title to the landowner is the local authority who entered into the section 106 agreement acting as LPA?

It is a standard contractual principle that one cannot contract with oneself. As

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