Section 106 Agreement Limitation Period

Section 106 Agreement Limitation Period: A Brief Guide

Section 106 agreements are legal agreements between developers and local authorities in the United Kingdom. These agreements are usually put in place to mitigate the impact of new developments on the local community, such as by providing affordable housing, contributing to transport infrastructure, or funding local public services.

While section 106 agreements are an important tool for managing development, they also come with limitations. In particular, there is a time limit on the period during which the local authority can enforce the agreement. This is known as the section 106 agreement limitation period.

What is the Section 106 Agreement Limitation Period?

The section 106 agreement limitation period is the amount of time during which the local authority can take legal action to enforce the terms of a section 106 agreement. This period is set out in law and is usually between 5 and 10 years from the date of the agreement.

The exact limitation period will depend on the specific terms of the agreement and the local planning authority. In some cases, the limitation period may be longer than 10 years if there are special circumstances.

Why is the Limitation Period Important?

The section 106 agreement limitation period is important because it puts a time limit on the legal obligations of the developer. Once the limitation period has expired, the developer is no longer legally required to comply with the terms of the agreement.

This means that local authorities need to be vigilant in enforcing section 106 agreements within the limitation period. If they fail to enforce the agreement within the time limit, they may lose the ability to do so in the future.

How to Enforce a Section 106 Agreement

If a developer fails to comply with the terms of a section 106 agreement, the local authority may take legal action to enforce the agreement. This may involve seeking an injunction or seeking damages for breach of contract.

However, it`s important to note that the local authority must take action within the section 106 agreement limitation period. If the limitation period has expired, the local authority may not be able to take legal action to enforce the agreement.

Conclusion

Section 106 agreements are an important tool for managing development in the UK. However, they come with a limitation period that puts a time limit on the legal obligations of the developer.

Local authorities must be vigilant in enforcing section 106 agreements within the limitation period to ensure that developers comply with their legal obligations. Failure to enforce the agreement within the time limit may result in the local authority losing the ability to do so in the future.