Section 106 Agreement Solicitors: Legal Advice for Developers and Landowners

Obtaining planning permission is a major milestone for any development project. However, receiving approval does not always mean you are free to begin construction immediately. In some cases, planning permission is granted subject to additional legal obligations, one of the most common being a Section 106 Agreement.

Whether you’re a homeowner undertaking a large extension, a landowner promoting land for development, or a property developer delivering a residential or commercial scheme, understanding how a Section 106 Agreement works is essential before progressing your project.

One of the most common questions clients ask is:

“What is a Section 106 Agreement, and why do I need one?”

The answer depends on the nature of your development and its impact on the surrounding area. A Section 106 Agreement is designed to ensure that developments contribute towards the infrastructure, services, or community facilities needed to support them. While these agreements play an important role in the planning process, they can also affect project costs, development timescales, and future obligations.

At Charrette Law, we advise homeowners, developers, landowners, and investors on all aspects of planning obligations. Whether you’re negotiating a new Section 106 Agreement, seeking to modify an existing agreement, or purchasing land affected by one, our experienced planning lawyers can provide practical legal advice tailored to your project.

In this guide, we’ll explain what a Section 106 Agreement is, when it applies, and how obtaining legal advice early can help you avoid delays and protect your investment.

What Is a Section 106 Agreement?

A Section 106 Agreement is a legally binding agreement entered into between a developer or landowner and the Local Planning Authority under Section 106 of the Town and Country Planning Act 1990.

Its purpose is to reduce or mitigate the impact that a development may have on the local community.

Rather than refusing planning permission outright, a Local Planning Authority may grant permission subject to the developer agreeing to provide certain contributions or carry out specific obligations.

These obligations are intended to make a development acceptable in planning terms where it would otherwise have an unacceptable impact.

Unlike planning conditions, which are attached directly to a planning permission, a Section 106 Agreement is a separate legal agreement that continues to bind the land, meaning future owners may also be affected by its terms.

At Charrette Law, we regularly advise clients on the legal implications of Section 106 Agreements, helping them understand their obligations before they commit to a property transaction or development project.

When Is a Section 106 Agreement Required?

Not every planning application requires a Section 106 Agreement.

They are generally used where a proposed development is likely to create additional pressure on local infrastructure or where planning obligations are necessary to make the development acceptable.

A Local Planning Authority may request a Section 106 Agreement for developments involving:

• Residential housing schemes. 
• Mixed-use developments. 
• Commercial developments. 
• Major redevelopment projects. 
• Student accommodation. 
• Care homes. 
• Retail developments. 
• Changes of use with wider planning impacts. 

The need for a Section 106 Agreement will depend on the scale, location, and nature of the proposed development, together with the planning policies of the relevant Local Planning Authority.

At Charrette Law, we help clients understand whether a proposed development is likely to require planning obligations and advise on the legal implications before agreements are signed.

Planning a Development?

If your planning application may involve a Section 106 Agreement, obtaining legal advice at an early stage can help you understand your obligations, identify potential risks, and negotiate terms that are appropriate for your development.

At Charrette Law, our planning lawyers regularly advise developers, landowners, and property owners on planning obligations, helping clients move projects forward while protecting their commercial interests.

Contact Charrette Law today to discuss your development with one of our experienced planning lawyers.

What Can a Section 106 Agreement Include?

The contents of a Section 106 Agreement vary depending on the development and the planning issues identified by the Local Planning Authority.

Common obligations include:

• Affordable housing contributions. 
• Highway or transport improvements. 
• New roads or pedestrian access. 
• Public open spaces. 
• Children’s play areas. 
• Schools and educational contributions. 
• Healthcare facilities. 
• Flood mitigation measures. 
• Environmental improvements. 
• Financial contributions towards local infrastructure. 

Some agreements also include restrictions preventing development from commencing until certain obligations have been fulfilled.

Because these obligations can significantly affect the viability of a project, it is important to understand precisely what is being agreed upon before signing.

At Charrette Law, we help clients review draft Section 106 Agreements, explain the legal implications of each obligation, and negotiate terms where appropriate.

Section 106 Agreement vs Planning Conditions

Many people assume that a Section 106 Agreement and planning conditions are the same thing, but they serve different purposes.

Planning conditions are imposed directly on a planning permission and regulate how a development must be carried out.

A Section 106 Agreement, on the other hand, is a separate legal agreement that creates legally enforceable obligations between the developer and the Local Planning Authority.

For example, planning conditions might require certain materials to be used or landscaping to be completed before occupation.

A Section 106 Agreement may require the developer to provide affordable housing, contribute to local schools, or deliver improvements to public infrastructure.

Understanding the distinction is important because the legal consequences of breaching a Section 106 Agreement differ from those associated with failing to comply with planning conditions.

At Charrette Law, we advise clients on both planning conditions and Section 106 obligations, helping them understand their legal responsibilities before development begins.

Why Early Legal Advice Matters

Section 106 Agreements often involve significant financial commitments and long-term obligations that can affect the value and viability of a development.

We’ve worked with clients who only became aware of these obligations after agreeing to purchase development land, resulting in unexpected costs and delays.

Seeking legal advice before entering into a Section 106 Agreement allows potential issues to be identified early, helping developers make informed decisions and reducing the likelihood of costly disputes later.

At Charrette Law, we work closely with our clients throughout the planning process, providing practical legal advice that supports successful developments while protecting their commercial objectives.

Can a Section 106 Agreement Be Changed or Removed?

Yes, in some circumstances, a Section 106 Agreement can be modified or discharged. However, this is not an automatic process, and it often requires careful legal and planning consideration.

Over time, circumstances can change. A development that was viable when planning permission was granted may no longer be financially practical due to rising construction costs, changes in the property market, or updated planning policies. In these situations, it may be possible to negotiate changes to the agreement with the Local Planning Authority.

Depending on the circumstances, a Section 106 Agreement may be:

• Varied by mutual agreement between the parties. 
• Modified following a formal application. 
• Discharged where the obligations are no longer necessary. 
• Reviewed as part of a new planning application. 

Whether a variation is likely to succeed will depend on the wording of the agreement, the planning history of the site, and the reasons why the obligations are no longer appropriate.

At Charrette Law, we advise developers and landowners on applications to modify or discharge Section 106 Agreements, helping clients identify the most effective strategy while protecting the viability of their projects.

Who Is Bound by a Section 106 Agreement?

One of the most important features of a Section 106 Agreement is that it usually runs with the land.

This means the obligations do not simply apply to the original developer who entered into the agreement. Future owners, developers, and, in some cases, mortgage lenders may also be affected.

For this reason, anyone purchasing development land should carefully review whether a Section 106 Agreement already exists and understand the obligations attached to the property.

We’ve advised clients who were surprised to discover that the land they intended to purchase was subject to ongoing planning obligations, including financial contributions and restrictions on development. Identifying these issues during the due diligence stage can prevent costly surprises later.

At Charrette Law, we review planning agreements as part of property transactions, helping clients understand the legal commitments attached to the land before contracts are exchanged.

Purchasing Development Land?

Before purchasing land with planning permission, it’s important to understand whether a Section 106 Agreement applies and how it could affect your proposed development.

Our planning lawyers can review planning obligations, explain your legal responsibilities, and identify potential risks before you commit to the transaction.

Contact Charrette Law today to ensure you fully understand the legal implications of your development before moving forward.

What Happens If You Breach a Section 106 Agreement?

Because a Section 106 Agreement is a legally binding document, failing to comply with its terms can have serious consequences.

Depending on the circumstances, the Local Planning Authority may take enforcement action to ensure the obligations are fulfilled.

Potential consequences include:

• Delays to your development. 
• Enforcement proceedings. 
• Court action. 
• Financial penalties or recovery of outstanding contributions. 
• Restrictions on occupying completed buildings. 
• Additional legal costs. 

Ignoring planning obligations rarely makes the issue disappear. In many cases, early legal advice can help resolve concerns before they develop into more significant disputes.

At Charrette Law, we assist clients facing enforcement action, disputes over planning obligations, and disagreements regarding the interpretation of Section 106 Agreements.

Common Issues Developers Face

Although every development is different, certain issues arise repeatedly when dealing with Section 106 Agreements.

These include:

• Unexpected financial contributions. 
• Delays in negotiating the agreement. 
• Affordable housing obligations affecting development viability. 
• Disputes over trigger points for payments. 
• Unclear drafting of planning obligations. 
• Changes to a development after planning permission has been granted. 
• Purchasing land without understanding existing obligations. 
• Delays caused by incomplete legal documentation. 

Many of these issues can be avoided through early legal advice and careful review of the proposed agreement before it is completed.

At Charrette Law, we work proactively with developers, landowners, and investors to identify potential issues at an early stage, helping projects progress as smoothly as possible.

How Section 106 Agreements Fit into the Wider Planning Process

A Section 106 Agreement is only one part of the planning process. Depending on your development, you may also need advice on planning applications, planning appeals, planning objections, or other legal matters affecting your project.

For example, if planning permission has been refused, our guide on Planning Appeals explains how decisions can be challenged through the Planning Inspectorate.

If you’re responding to concerns raised during the planning process, our Planning Objections guide explains how objections are considered and how they may affect the outcome of an application.

For developments being carried out under permitted development rights, it’s also worth reading our article on Permitted Development Rights, which explains when planning permission may not be required and when additional approvals may still apply.

Taking a joined-up approach to planning law helps reduce delays, improve compliance, and give developers greater confidence throughout the development process.

Why Choose Charrette Law?

Planning obligations can have a significant impact on the success, cost, and viability of a development.

At Charrette Law, we provide practical legal advice to homeowners, developers, landowners, investors, and businesses on every stage of the planning process.

Our planning law services include:

• Advising on Section 106 Agreements. 
• Negotiating planning obligations. 
• Reviewing draft agreements. 
• Applications to modify or discharge Section 106 Agreements. 
• Planning appeals. 
• Planning objections. 
• Advice on planning conditions. 
• Development and property law advice. 

We understand that every development is unique. Our approach is to provide commercially focused legal advice that protects your interests while helping your project progress efficiently.

Speak to Charrette Law About Your Section 106 Agreement

Whether you’re negotiating a new Section 106 Agreement, purchasing land affected by planning obligations, or looking to modify an existing agreement, obtaining legal advice at an early stage can save significant time, cost, and uncertainty.

At Charrette Law, our experienced planning lawyers provide clear, practical advice tailored to your project. We’ll review the proposed agreement, explain your legal obligations, identify potential risks, and help you negotiate solutions that support your development objectives.

If you need advice on a Section 106 Agreement or any other planning law matter, contact Charrette Law today to arrange a consultation with one of our experienced planning lawyers.

Frequently Asked Questions

What is a Section 106 Agreement?

A Section 106 Agreement is a legally binding agreement between a developer or landowner and a Local Planning Authority. It is used to secure planning obligations that make a development acceptable in planning terms.

Is a Section 106 Agreement the same as planning permission?

No. Planning permission authorises development, while a Section 106 Agreement sets out additional legal obligations that may need to be satisfied before or during the development.

Who pays for a Section 106 Agreement?

The developer or landowner is generally responsible for meeting the obligations set out in the agreement. These may include financial contributions, affordable housing, or infrastructure works.

Can a Section 106 Agreement be changed?

Yes. In some circumstances, Section 106 Agreements can be modified or discharged, although this usually requires agreement with the Local Planning Authority or a formal legal process.

Does a Section 106 Agreement affect future owners?

Yes. Section 106 Agreements generally run with the land, meaning future owners may also be bound by the obligations contained within the agreement.

What happens if I breach a Section 106 Agreement?

Failure to comply can result in enforcement action, legal proceedings, financial consequences, or delays to your development. Seeking legal advice promptly can help minimise these risks.

Do all planning applications require a Section 106 Agreement?

No. They are typically required for developments where planning obligations are necessary to mitigate the impact of the proposal. Smaller developments may not require one, depending on local planning policies and the nature of the project.

Can Charrette Law help negotiate a Section 106 Agreement?

Yes. At Charrette Law, we advise clients on negotiating, reviewing, modifying, and enforcing Section 106 Agreements. Whether you’re a homeowner, developer, landowner, or investor, our experienced planning lawyers can provide tailored legal advice to help you achieve your development goals while complying with planning law.