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UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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planning section 106 contribution

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planning section 106 contribution
-Could you explain your situation a little more?
Customer: replied 3 years ago.

We purchased a freehold piece of land which has 14 apartments built on it but have just found out that the s106 contributions were not paid.

The s106 obligations were entered into by the company and the mortgagee. The obligations stated that once 50% of the dwellings were occupied the contributions would be due, the 50% came into effect in December 2010 is there a timescale in which the council must seek payment?


The S.106 agreement was between the council and whoever sold the property to you, it is not binding on you and you are not liable to pay anything to the council.

You should inform the council as much and ask them to go after your vendor.

To answer your question, the statutory limitation period for enforcing contractual obligations is 6 years so the council has until December 2016 to claim the payment.

May I help further?
Customer: replied 3 years ago.

the agreement states that the undertaking will bind the owner the mortgagee and their successors in title.

What I cant understand is that within a month of me purchasing this land the council are straight onto me for payment but why have they not chased the original owner and mortgagee since dec 2010 to date

In my opinion, you are not the successor in title as that would be the vendor's heirs etc if the vendor was no longer alive.

You may therefore advise the council as much and inform them to go after the vendor.

Or you may pay off the council and claim the money back from the vendor as the vendor should have informed you of the S.106 agreement and that the payment was due under it.

Or you may simply pay off the money and let the matter rest.

It may be that the council only realised that the money had not been paid when it was notified that there was a new owner (you) which is why it decided to come after you, although legally, it has no basis in making you pay this money.

Hope this clarifies.
Customer: replied 3 years ago.

I too was thinking along these lines but then unearthed this meaning online

Successor in title

A person who takes over the rights of another. Â Rights can be passed by inheritance, gift or sale, and may be passed to an individual, partnership or corporation.

What I was trying to understand is that surely within the time period of dec 2010 the council would of looked to the original owner and the mortgagee for payment if not or if so how long do they have to make demands for payment?

The total amount payable is £75,857 so it is not money I have spare to look at paying them

As advised, the council has 6 years from Dec. 2010 to collect the debt, why it did not pursue the original owner I cannot answer and perhaps you could ask the council for an explanation. Personally I think it was an oversight on the council's part and they only woke up when you purchased the property.

My argument is still that you are not obliged to pay the money as you are not a successor in title by operation of law but a transferee and that the council (and you) should indeed chase the original owner to pay the money.

Hope this helps
Customer: replied 3 years ago.

A clause states that the owner covenants to inform the borough council by notice in writing addressed as legal services section when one half of the dwellings identified in this undertaking have been occupied as the point by which a payment shall be made or an obligation fulfilled in clause 3.1

Customer: replied 3 years ago.

And also that the mortgagee shall be liable only for the breach of the provisions hereof during such period as it is a mortgagee in possession of the Owners site and shall not be liable for any breach of the provisions hereof after it has parted with or released its interest in the owners site.

Yes, that would make the previous owner to be in breach of contract by not informing the council. The mortgagee or bank is no longer liable to the council if it's charge has been released or discharged.
All the best, ***** ***** feedback
Customer: replied 3 years ago.

Ok so if that avenue fails can we look to compensation from the solicitor for not carrying out a local land charges search?

Yes, you may make a claim against your solicitor.

All the best
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