S106 & Unilateral Undertakings

By Tiffany Cloynes | 13 November 2019

It is generally accepted a local authority cannot enter into an obligation with itself.

This causes difficulties when a local authority seeks to impose planning obligations through a section 106 agreement which relates to land which the local authority itself owns.

A s.106 Agreement must be executed as a deed, which contains obligations and identifies the land, the party accepting the obligation and the authority who will enforce the obligation.  A party cannot make an agreement with itself, nor enforce obligations against itself, even if acting in different capacities.   Therefore,  without a purchaser/developer to enter into a s.106 Agreement, the local authority will not issue planning consent.

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