What Is a Section 75 Agreement Scotland

Most landowners are happy to hear that the building permit for their new home or development has been agreed in principle. If you are not an experienced developer, it may be very surprising that before granting the building permit, the local authority can ask the applicant to enter into an agreement under Article 75. Section 75 of the Planning (Scotland) Act 1997 allows a person to make a « planning commitment » (either unilaterally in a unilateral company S75 or in agreement with the competent planning authority in an agreement under section 75) that restricts or regulates land use or development. A planning obligation may be subject to conditions, require the payment of contributions from promoters and/or contain other necessary or appropriate ancillary and correlative provisions. An agreement under § 75 or a unilateral obligation may contain several planning obligations. As with any contract, it is important that you contact your lawyer as soon as possible if you are asked to enter into a section 75 agreement as part of your construction application to navigate the process. Your lawyer is best placed to negotiate more favorable terms for the deal, less onerous terms for future owners of the property, which makes it easier to sell the property in the future, or obligations that are more acceptable to your lender so that your mortgage doesn`t have to be repaid before development begins. We have experience in complex multilateral negotiations and planning agreements for specialized projects, such as . B the development of major master plans and renewable energy infrastructure. We can also advise you on how to sustain your developments in light of the upcoming changes under the Planning (Scotland) Act 2019. A section 75 agreement, sometimes referred to as a planning obligation, is a contract between a landowner and city council as part of the construction application process. It will be possible for developers to sign a section 75 agreement before owning the land.

This allows developers who have completed letters or an option to purchase land on the condition that they receive planning to negotiate the terms of a section 75 agreement with the development authority without reference to the landowner and enter into the section 75 agreement before acquiring the land. This provision is likely to be seen as support for real estate development, but it is difficult to say that it makes a significant difference in practice. The current practice, of course, is that with respect to notices or option agreement, an obligation is imposed on the existing landowner to sign a section 75 agreement negotiated by the developer, which will result in the issuance of a building permit, which in turn will allow the developer to clean up the deferral state in the letters and purchase the land. If you have applied for construction of a new property and have been asked to enter into a section 75 agreement, it is important that you seek legal advice as soon as possible. I can help you negotiate favorable terms for the deal that will make it easier to sell the property in the future and make the terms more acceptable to your lender. Please contact me Ross Leatham on 0141 552 3422 or by email at rjl@mitchells-roberton.co.uk For the feasibility of a project, it may be essential to understand the impact of section 75 agreements and ensure that they are properly formulated. The 2020 regulation confirms that the amendments made to § 75 « do not affect the validity of an existing urban planning obligation and that the provisions of § 75 relating to an existing urban planning obligation continue to apply immediately before 18 November 2020 ». If the landowner has a hypothec on the property, the lender must give consent before entering into the section 75 agreement. A landowner must ensure that the section 75 agreement does not violate the terms of their mortgage and, in certain circumstances, the lender may be able to require that the mortgage be relieved. Once completed, a section 75 agreement will be registered against ownership of the landowners` property. Agreement § 75 is fulfilled only if the financial contribution has been paid or if the planning obligation has been fulfilled.

For example, a developer seeking consent to build a large subdivision might be required to enter into an S75 agreement that covers the following: The intent behind unilateral agreements is that they allow a developer to « put on the table » the Section 75 agreement, and in particular the planning benefit package it would be willing to enter into. the building permit should be granted. .