1. Section 106 of the Town and Country Planning Act 1990 (as amended) is the legal provision that allows local planning authorities in England and Wales to enter into legally binding agreements with developers in relation to planning permission.
2. The agreements are commonly referred to as “Section 106 agreements” or “planning obligations.”
3. These agreements are often used to mitigate the impacts of development and to secure community benefits, such as affordable housing, infrastructure and public open spaces, in order to make the development acceptable in planning terms.
4. Section 106 agreements are typically used in conjunction with the grant of planning permission for a development, and the terms of the agreement are set out in the planning permission. The agreements are binding on the developer, and any subsequent owners of the land or building.