Section 75 Agreement Scotland Definition

We help our clients negotiate, modify, comply, execute and appeal decisions related to Section 75 agreements and other legal planning agreements. Our experience includes contracts with utility companies, general interest agreements, comparative agreements between opposing parties and advice on the planning aspects of commercial contracts and leases. 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 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. Section 75 agreements are used when the conditions of the building permit itself are not appropriate. While planning conditions govern how a project is constructed and used, section 75 agreements generally provide for financial contributions and all requirements for land outside the building permit area (outside the „red border“). Understanding the impact of the agreements described in Section 75 and ensuring that they are properly developed may be essential for the viability of a project. Traditionally, a planner must contact several internal and external consultants to determine if a planning obligation is required in accordance with the planning policy. In the 32 local authorities in Scotland, there are many approaches to how planning agreements are concluded, with examples of good and bad practices.

Like what. B in the commission`s reports, there may sometimes be little clarity on the amount of contributions due and the payment dates associated with them. This means that once the planning committee intends to grant the building permit, subject to the conclusion of a legal agreement, there may be extensive negotiations and disagreements on its terms, resulting in delays. We have expertise in order planning. Section 75 agreements are subject to stricter legal requirements than a standard bargaining agreement. They must limit or regulate land development or use and meet the Scottish Government`s circular tests. Each planning authority has its own negotiating approach and its own preferred formulation. For example, a developer applying for permission to build a large subdivision may be required to enter into an S75 agreement that includes: we have experience in complex multi-party negotiations and planning agreements for specialized projects such as the major development of master plans and renewable energy infrastructure.

We also advise you on the future safety of your developments in light of the upcoming changes under the Planning (Scotland) Act 2019. When entering into a Section 75 agreement, the financial obligations imposed on the landowner can be a costly surprise if they are not taken into account when filing the development application. It is also important that the agreement be linked to the country in accordance with Section 75, so that the conclusion of such an agreement will have significant consequences. Most landowners are pleased that planning permission for their new home or construction has in principle been granted.