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Jeremy Aldermartin
Jeremy Aldermartin, Solicitor
Category: Law
Satisfied Customers: 3652
Experience:  Dual qualified Solicitor and Attorney
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We have an option agreement on our property the plans are

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We have an option agreement on our property the plans are passed and the buyer now says he needs a 106 agreement do we need to sign it and should he now be making payment
Hi thank you for your message. Is the buyer a developer?
Customer: replied 5 months ago.
that's rigjt
Thank you for your message, the developer should be the one who signs the agreement once they have bought the property. Planning obligations, also known as Section 106 agreements (based on that section of The 1990 Town & Country Planning Act) are private agreements made between local authorities and developers and can be attached to a planning permission to make acceptable development which would otherwise be unacceptable in planning terms. The land itself, rather than the person or organisation that develops the land, is bound by a Section 106 Agreement, therefore if you sign the agreement you would be bound until the property is sold. If the developer then fails to buy the property for some reason you then have a restriction on your property potentially reducing the value. Therefore, you may wish to ask the developer why he wants you to sign it when presumably he is the one that has applied for planning permission and can sign it himself after purchase. I hope this helps, if you can please accept my answer and rate me 5 stars (in the top right of your screen) then Just Answer will credit me for helping you today.
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Customer: replied 5 months ago.
Thank you that is extremely helpful