When a property has a ‘Section 173 Agreement’ registered on it, what does this mean?
Welcome to the “Frequently Asked Planning Questions: Conveyancers and Solicitors Edition” blog series, where we dive into those often-tricky planning questions that come up when we’re working with the brilliant Conveyancers and Solicitors we partner with.
Here at AS Planning, we’re all about teamwork, and we regularly help you and your clients navigate the sometimes-complex world of planning in across Victoria. Ever find yourself scratching your head over a particular planning scenario? You’re definitely not alone! We’ve compiled some of the common questions we encounter that we hope will be a real asset to you and your firm in minimising risk, streamlining property transactions and adding value for your clients.
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Example Planning Question:
“The title for a property my client is buying has a ‘Section 173 Agreement’ registered on it. What does this signify, and what are the potential ongoing obligations?”
Example Scenario:
Your client is purchasing a unique property that previously had a planning permit for a specific type of development (e.g., a reduced car parking permit in exchange for a public art contribution). The title search reveals a Section 173 Agreement. Your client intends to use the property for a different purpose and wants to understand if this agreement will affect his future plans.
Planning Perspective Considerations for a Section 173 Agreement:
A Section 173 Agreement is a legally binding agreement made between a landowner and a Council under Section 173 of the Planning and Environment Act 1987. It runs with the land and binds future owners. These agreements are often used to secure specific outcomes related to a planning permit.
Key Considerations:
- Purpose of the Agreement: Section 173 Agreements can cover a wide range of matters, such as restrictions on land use, requirements for ongoing management, contributions to public open space, affordable housing, or limitations on future development.
- Ongoing Obligations: The obligations outlined in the agreement are legally binding on all future owners of the land. These can be long-term and may have significant implications for how the property can be used or developed.
- Impact on Future Plans: Your client’s intended use of the property might be restricted or subject to the conditions of the Section 173 Agreement.
- Removal or Amendment: Amending or removing a Section 173 Agreement can be a complex legal and planning process, often requiring Council approval and potentially the agreement of other parties.
