Section 106 Agreement
Definition
A legal agreement between a developer and the local planning authority, made under Section 106 of the Town and Country Planning Act 1990. These agreements require developers to provide benefits like affordable housing, public open space, or infrastructure improvements as a condition of planning permission.
Why it matters
If you're buying a new-build on a development with a Section 106 agreement, it may affect what gets built nearby, the mix of housing types, or the maintenance obligations on communal areas. It can also mean the property was built as 'affordable housing' with resale restrictions.
Related terms
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