If you`re a property developer or landowner in Scotland, it`s likely that you`ll come across a Section 75 Planning Agreement. This is a legal agreement between a developer and a local authority, which aims to secure contributions towards community facilities and infrastructure projects.
Section 75 agreements were introduced in Scotland in 1997, and they`re now a standard part of the planning process. The purpose of these agreements is to ensure that a development will make a positive contribution to the local area, and that any negative impacts are mitigated.
When a developer applies for planning permission for a development in Scotland, the local authority will consider the potential impact of the development on the local community. This could include issues such as increased traffic, demands on local services, or environmental concerns.
If the local authority decides that a Section 75 agreement is necessary, they will negotiate with the developer to agree on a package of contributions to be made towards community facilities and infrastructure. These contributions might include financial payments, the provision of affordable housing, or the creation of new community facilities such as parks or schools.
The terms of the agreement will be set out in a legal document, which both the developer and the local authority will sign. The document will also outline the penalties that will apply if the developer fails to meet their obligations.
Section 75 agreements can be complex and time-consuming to negotiate, but they`re an important tool for ensuring that development in Scotland is sustainable and benefits the local community. If you`re a property developer in Scotland, it`s vital that you understand the requirements of Section 75 agreements and work closely with local authorities to ensure that you meet your obligations.
