A Planning Obligation is a legal agreement used to secure a planning gain. They are most commonly used by developers to make financial contributions towards the provision of affordable housing off-site or site specific mitigation, required for the development to proceed.
Section 106 templates
A Section 106 agreement template is provided when we are required to do something as well as the applicant. Using the model clauses in this standard Section 106 Agreement template for a planning obligation can help speed up the planning decision-making process and save legal costs.
Where an applicant is proposing to use a Planning Obligation, it is recommended that either a draft Unilateral Obligation or a statement of the proposed Heads of Terms is submitted with the application, whichever is most appropriate.
A Unilateral Obligation template is provided to speed up the application process and avoid the need for legal expenses for routine obligations, other than providing appropriate land registry documentation to prove ownership of the land in question. A Unilateral Obligation will need to be accompanied by a site plan, with the site clearly identified, and an office copy of the land registry ownership details to prove that the signatory of the obligation is entitled to enter into that obligation.
Applicants should note that, where a Planning Obligation is needed, the absence of a draft agreement in advance of the application being considered by the Planning Committee may result in planning permission being refused, in the interests of speeding up application decisions.
CIL and Planning Obligation SPD explains where contributions towards open space, affordable housing or education facilities may be required for certain residential developments.