Section 106 Agreement Deed of Variation: What You Need to Know
If you`re involved in property development, or are currently in the process of purchasing or selling land, you may have come across the term “section 106 agreement”. This document is a legally binding agreement between a developer and a local planning authority that outlines the conditions and obligations that must be met in order for planning permission to be granted.
However, what happens when circumstances change and the original section 106 agreement needs to be amended? This is where a section 106 agreement deed of variation comes into play.
What is a Section 106 Agreement Deed of Variation?
A section 106 agreement deed of variation is a legal document that amends the terms of an existing section 106 agreement. This may be necessary if circumstances change during the development process, or if certain obligations outlined in the original agreement are no longer feasible.
For example, if a developer was required to contribute funds towards a new road as part of the original section 106 agreement, but the plans for the road change, a section 106 agreement deed of variation would be necessary to outline the new obligations and conditions.
The Benefits of a Section 106 Agreement Deed of Variation
One of the main benefits of a section 106 agreement deed of variation is that it allows for flexibility in the development process. As circumstances change, it may be necessary to amend the original agreement to better reflect the current situation. Without a deed of variation, developers may be unable to move forward with their plans, causing delays and potentially losing profits.
Additionally, a section 106 agreement deed of variation can provide clarity and certainty for both parties involved in the agreement. By outlining the new conditions and obligations in a legal document, developers can ensure that they are fulfilling their obligations and local planning authorities can ensure that the development is within the agreed-upon parameters.
How to Draft a Section 106 Agreement Deed of Variation
If you are considering drafting a section 106 agreement deed of variation, it is important to seek legal advice to ensure that the document is legally binding and meets the requirements of the original section 106 agreement.
When drafting the deed of variation, it is important to clearly state the changes to the original agreement and outline the new conditions and obligations that must be met. The document should also be signed by both parties involved in the agreement to ensure that it is legally binding.
Overall, a section 106 agreement deed of variation can be an important tool for property developers and local planning authorities alike, allowing for flexibility and clarity in the development process. If you are considering drafting a section 106 agreement deed of variation, be sure to seek legal advice to ensure that the document is legally binding and meets all necessary requirements.
