Section 75 Agreement Scotland Definition

Section 75 Agreement Scotland Definition

“Planning agreements play a limited but useful role in the development management process, where they can be used to overcome barriers to granting building permits. An agreement may mean that development can be approved or improved, while potentially negative effects on land use, the environment and infrastructure can be reduced, eliminated or compensated. Between planning authorities and developers, there will always be differences of opinion on the amount of planning benefits to be paid due to the different objectives of the public and private sectors. The Scottish Government has clarified that planning obligation payments should only be requested if they meet all the policy tests set out in its 2012 Circular, namely: Commitments: We help clients negotiate, amend, comply with, execute and appeal decisions relating to contracts set out in Section 75 and other statutory planning agreements. Our experience includes contracts with utility companies, public utility agreements, transaction agreements between opposing parties and advice on the planning aspects of commercial and lease contracts. A section 75 agreement, sometimes referred to as a planning obligation, is a contract between a landowner and the city council as part of the construction application process. If the landowner has a mortgage on the property, the lender must give his consent before the agreement is entered into in accordance with section 75. A landowner must ensure that the Section 75 agreement does not violate the terms of their mortgage and, in certain circumstances, the lender may require that the mortgage be discharged. Once concluded, an agreement is registered under Section 75 against the property of the landowners of the property. The agreement provided for in Article 75 shall be complied with only if the financial contribution is paid or if the planning obligation is fulfilled.

When entering into an agreement under section 75, the financial obligations imposed on the landowner can be a costly surprise if they are not taken into account when filing the application for construction. It is also important to note that the agreement is country-bound under Section 75, so the conclusion of such an agreement has important consequences. For the feasibility of a project, it may be essential to understand the impact of the agreements set out in Section 75 and to ensure that they are formulated appropriately. We have technical expertise in order planning. § 75 Agreements are subject to stricter legal requirements than a standard commercial contract. They must limit or regulate the development or use of land and meet the tests of the Scottish Government Circular. Each planning authority has its own negotiating approach and preferred formulation. For example, a developer seeking approval for the construction of a large subdivision may be required to enter into an S75 agreement that covers: As with any contract, it is important that you go to your lawyer as often as possible to navigate the process if you are asked to enter into an agreement in accordance with Section 75.

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