Planning authorities must ensure that each of the above policy tests has been conducted when it comes to a planning obligation with a developer and verify that they comply with their own policies and guidelines for developer contributions. There is no time limit on when a developer can apply for an amendment or performance of a planning obligation, so a planning obligation could be challenged immediately after the deren agreement between the parties and the granting of the building permit. For example, a developer applying for a building permit for a large subdivision may be required to enter into an S75 agreement, which includes that, however, there are problems with consolidating planning obligations. The planning authority cannot revise the amendment text requested in the application and, where possible, cooperation with the planning authority must be carried out prior to the formal request. A proponent has the option of modifying or fulfilling a planning obligation with the planning authority if it is considered no longer in accordance with the above policy tests. 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. Many landowners are not aware that these planning obligations are not limited to large constructions, but may also apply to a detached house or commercial real estate under construction. 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. If you have applied for development for a new property and have been asked by the local authority to enter into a Section 75 agreement, please contact. 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. 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. I can help you negotiate favourable terms of the agreement that will facilitate the sale of the property in the future and make the terms more acceptable to your lender.
Please contact me at Ross Leatham on 0141 552 3422 or e-mail firstname.lastname@example.org As with any contract, if you are invited to enter into a Section 75 contract as part of your planning application, it is important that you contact your lawyer as quickly as possible to navigate the process. 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.