Buying land or investing in a development is not simply a matter of assessing its location, market value or construction potential. The legal obligations attached to a property can significantly influence what you are permitted to build, how the land can be used and whether a proposed development is financially viable.
For property developers, investors and landowners, understanding these obligations before exchanging contracts or commencing work can be just as important as obtaining planning permission.
A planning law solicitor can help identify legal issues connected with planning decisions, obligations, restrictions and disputes. Taking a closer look at these matters before committing to a project may help reduce the risk of unexpected liabilities and expensive complications later.
For those considering a property transaction or development in England, the key question is not only whether a site can be developed, but also whether the legal conditions attached to it are compatible with the intended project.
Planning Permission Does Not Tell the Whole Story
Planning permission is an important part of the development process, but it does not necessarily resolve every legal issue affecting a property.
A site may have permission for a particular development while remaining subject to conditions, agreements or restrictions that influence how and when the approved scheme can proceed.
For example, a permission may require specific landscaping, access arrangements, drainage measures or other works before a development can be occupied. Failure to comply with applicable planning conditions can create difficulties even where permission has already been granted.
Government guidance states that planning conditions should be necessary, relevant, enforceable, precise and reasonable. Developers should therefore understand not only the permission itself but also the requirements attached to it.
Reviewing the decision notice and associated documents before work begins can help establish what must be done, when it must be completed and whether additional approvals are needed.
Section 106 Agreements: The Obligations That Can Follow the Land
One of the most important legal considerations for property developers is the existence of a planning obligation, commonly known as a Section 106 agreement.
Under section 106 of the Town and Country Planning Act 1990, a planning obligation can restrict the development or use of land, require certain operations or activities, or require payments to a local planning authority. These obligations may also be enforceable against people who subsequently acquire an interest in the land.
This means that a developer purchasing a site should not assume that existing planning obligations affect only the previous owner.
Depending on the agreement, obligations may relate to affordable housing, infrastructure contributions, restrictions on occupation or other requirements associated with the development. Their precise effect depends on the wording of the agreement and the circumstances of the property.
Before acquiring land, developers should investigate:
- Whether a Section 106 agreement or unilateral undertaking exists.
- Which obligations apply to the proposed development.
- Whether financial contributions or other requirements remain outstanding.
- When particular obligations take effect.
- Whether the obligations could affect the project’s viability or delivery timetable.
An obligation that is overlooked during due diligence could affect the financial assumptions underpinning a transaction. Understanding it early allows the buyer to assess the potential consequences before proceeding.
Buying Land With Planning Permission: What Should You Check?
A site marketed as having planning permission may appear to offer a straightforward development opportunity. However, the existence of a planning approval should not replace a thorough review of the property’s planning and legal position.
Before completing a purchase, a developer should establish whether the permission authorises the intended scheme and whether the associated requirements can realistically be satisfied.
Important checks may include:
The scope of the permission: Confirm that the approved plans, description of development and permitted use align with the proposed project.
Planning conditions: Identify conditions that must be discharged before development starts or before particular stages can proceed.
Planning obligations: Review any Section 106 agreement or unilateral undertaking and determine the obligations that may affect the land.
Implementation requirements: Establish whether the permission has been lawfully implemented, whether it remains capable of implementation and whether any time limits or other requirements apply.
Other property restrictions: Investigate relevant title restrictions, access rights, easements and third-party consents that could affect the ability to carry out the development.
These checks involve different legal and planning considerations. Depending on the transaction, a solicitor, planning consultant, surveyor or other specialist may need to contribute to the review.
The objective is to understand the practical and legal position of the site before the purchase becomes difficult or costly to unwind.
When Planning Obligations Become a Development Dispute
Planning-related disputes can arise when developers disagree with a local planning authority about the interpretation, implementation or continued relevance of an obligation.
For example, a developer may believe that a contribution should no longer be payable, that an obligation needs to be modified or that particular requirements are preventing a scheme from proceeding as anticipated.
The available options depend on the wording of the obligation and the relevant statutory provisions. Some planning obligations can be varied or discharged by agreement with the local planning authority. In other circumstances, a formal application may be possible under section 106A of the Town and Country Planning Act 1990, subject to the applicable requirements.
Where an application to modify or discharge an obligation is refused, or the authority does not determine it within the relevant period, an appeal may be available under section 106B.
Developers should not assume that an agreement can simply be cancelled because it has become inconvenient or commercially unattractive. The legal route, eligibility requirements and applicable deadlines need to be considered carefully.
Early assessment can help clarify whether negotiation, a formal application or another approach is appropriate.
Planning Enforcement: Understanding Your Legal Position
Planning enforcement can create serious uncertainty for property owners and developers, particularly where construction has already taken place or a development does not comply with the relevant permission.
A local planning authority may investigate suspected breaches and take enforcement action where it considers this appropriate. The consequences depend on the nature of the breach, the applicable legislation and the requirements of any formal notice.
If you receive an enforcement notice, it is important to establish precisely what the authority alleges, what steps it requires and when those steps must be completed. An appeal may be available on specified grounds, but the relevant procedure and deadline should be checked promptly.
Depending on the circumstances, the wider assessment may involve reviewing the planning history, examining whether the development is lawful, considering a retrospective application or identifying whether the authority’s requirements can be challenged.
A planning law solicitor may help with the legal aspects of the matter, while planning specialists may be needed to assess the planning merits and supporting evidence.
The important point is to understand your position before taking action that could affect your options.
How a Planning Law Solicitor Can Support a Development Project
Planning-related legal support may be relevant at several stages of a property investment, from the initial purchase to the resolution of a dispute.
Depending on the solicitor’s expertise and the scope of the engagement, support may include:
- Reviewing planning obligations and related legal documents.
- Identifying legal risks connected with land acquisition.
- Advising on the interpretation of planning conditions and obligations.
- Assisting with disputes involving planning agreements.
- Advising on planning enforcement and available legal procedures.
- Supporting appropriate challenges or appeals where the legal grounds exist.
The precise support required will depend on the project. A routine residential purchase may call for a different level of planning review from a development involving multiple land interests, substantial financial contributions or disputed obligations.
The earlier potential legal issues are identified, the more opportunity there may be to assess their impact on the transaction and consider appropriate next steps.
Planning Law Advice From Charrette Law
Property development decisions can involve substantial financial commitments, and overlooking a planning obligation or legal restriction can undermine an otherwise promising project.
Whether you are purchasing land, reviewing an existing planning agreement, preparing a development or responding to a planning dispute, understanding the legal position is an important part of managing risk.
Charrette Law can be contacted to discuss your planning or property-related requirements and establish whether its services are suitable for your circumstances.
Seeking appropriate advice before making a commitment can help you understand the obligations affecting a property, identify potential issues and make more informed decisions about the next stage of your project.
Frequently Asked Questions
What does a planning law solicitor do?
A planning law solicitor may advise on legal issues arising from planning decisions, planning obligations, enforcement action and disputes involving land development. The exact services available depend on the solicitor’s expertise and the scope of their practice.
Should I consult a planning law solicitor before buying development land?
It may be beneficial where the land is subject to planning obligations, restrictions or a complex planning history. Legal due diligence can help identify issues that may affect the intended use, development costs or transaction.
Can a Section 106 agreement affect a new owner?
Yes. Planning obligations can be enforceable against successors in title, subject to the applicable legal provisions and the terms of the agreement. Buyers should investigate existing obligations before completing a purchase.
Can a planning obligation be changed?
In certain circumstances, a planning obligation may be modified or discharged by agreement with the local planning authority or through the statutory application process. Eligibility and the available procedure depend on the obligation and relevant legislation.
What should I do if I receive a planning enforcement notice?
Review the notice carefully, identify the alleged breach and check the steps and deadlines specified. Obtain appropriate planning or legal advice promptly, as an appeal may be subject to strict time limits.
Is planning permission enough to make a development legally straightforward?
Not necessarily. Planning permission may be accompanied by conditions and obligations, while separate property rights, title restrictions and other consents may also affect whether a development can proceed. These matters should be assessed as part of the wider development process.
