Q&As

Where a section 106 obligation requires the owner of the land to sell a residential unit in the development at a discounted price, does the section 106 agreement need to detail in full the sale procedure or is the sale procedure part of the planning obligation? If the sale procedure is part of the planning obligation, can this type of planning obligation only be protected by a renewed deed of covenant on each future property transfer? Is it enough for the planning obligation to say that the unit must be sold at a discounted price? Is it possible to bind future purchasers into a sale procedure not contained in the section 106?

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Published on LexisPSL on 08/06/2016

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

  • Where a section 106 obligation requires the owner of the land to sell a residential unit in the development at a discounted price, does the section 106 agreement need to detail in full the sale procedure or is the sale procedure part of the planning obligation? If the sale procedure is part of the planning obligation, can this type of planning obligation only be protected by a renewed deed of covenant on each future property transfer? Is it enough for the planning obligation to say that the unit must be sold at a discounted price? Is it possible to bind future purchasers into a sale procedure not contained in the section 106?

Where a section 106 obligation requires the owner of the land to sell a residential unit in the development at a discounted price, does the section 106 agreement need to detail in full the sale procedure or is the sale procedure part of the planning obligation? If the sale procedure is part of the planning obligation, can this type of planning obligation only be protected by a renewed deed of covenant on each future property transfer? Is it enough for the planning obligation to say that the unit must be sold at a discounted price? Is it possible to bind future purchasers into a sale procedure not contained in the section 106?

For the purposes of this Q&A we have assumed that the obligation referred to is not a planning condition. See Lexis® PSL Planning Conditions: Overview for guidance on the use of planning conditions.

From the question posed, we assume

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