Legal/Regulatory compliance Flashcards
(19 cards)
What are some contractual conditions that could be included in a promotion agreement?
Promotion obligations
Promotion costs
Timeframes and longstop dates
What is a S106?
A S106 agreement is used to secure developer contributions to make a development acceptable in planning terms.
What Act does a S106 fall into?
Town and Country Planning Act 1990.
Can S106 Be Changed?
Yes - through Deed of Variation or Appeal or modification.
Are planning conditions the same as a S106?
No - conditions are operational or design-based restrictions to be agreed.
S106 are financial contributions to mitigate certain impacts.
Can you give me some examples of planning conditions?
Time limit - Prevent landbanking
Materials & design - Ensure visual quality and context
Environmental mitigation - Control drainage, ecology, contamination
Operational controls - Restrict hours, use, or parking
Pre-commencement - Phase development safely
Can you give me some examples of S106 obligations?
Affordable Housing
Education contribution
Healthcare contribution
Community Infastructure
POS
Biodiversity
What is a Community Infrastructure Levy?
CIL is a fixed-rate financial charge per square metre of new development, introduced under the Planning Act 2008, and governed by the Community Infrastructure Levy Regulations 2010.
What Planning designations do you take into account?
Green Belt, Areas of Outstanding Natural Beauty, listed buildings, Tree Preservation Orders, Sites of Special Scientific Interest, and Conservation Areas.
Do all LPAs charge CIL?
No
What is the difference between CIL and S106?
CIL is a fixed charged for general infastructure.
S106 is a negotiable cost for site specific mitigation.
What is exempt from CIL?
Affordable housing.
Do LPAs get to choose how much CIL is charged and what it goes to?
Yes they can choose how much and where it goes under the Planning Act 2008.
Why does CIL have to be indexed?
Have to be indexed to inflation to ensure that the real value of the charge is maintained over time.
Why is it important to comply with legal and regulatory requirements in land acquisition and development?
Legal and regulatory compliance ensures that developments are deliverable, enforceable, and consistent with national and local planning policies. Adhering to contractual terms and planning obligations, such as those under Section 106 of the Town and Country Planning Act 1990, is essential to mitigate risk, secure planning permissions, and support sustainable infrastructure delivery. Compliance also ensures transparency and protects the reputation of the business.
What are Section 106 agreements and how do they differ from the Community Infrastructure Levy (CIL)?
Section 106 agreements are negotiated obligations attached to planning permissions to mitigate the specific impact of development (e.g. affordable housing, highway works, local schools). CIL is a fixed, non-negotiable charge levied on new development by some local authorities to fund broader infrastructure needs. Unlike S106, which is site-specific, CIL contributes to strategic infrastructure and is set out in a published charging schedule.
What statutory designations might affect land promotion or development?
Statutory designations that can constrain or influence development include Green Belt, Areas of Outstanding Natural Beauty (AONBs), Sites of Special Scientific Interest (SSSIs), listed buildings, Conservation Areas, and Tree Preservation Orders. These designations may affect planning strategy, viability, and scheme design.
Can you give an example of how you identified or mitigated a legal risk on a development project?
At Tytherington, I reviewed a draft Section 106 agreement provided by South Gloucestershire Council as part of an appeal submission. It included financial contributions for open space, education, and community infrastructure. Recognising that the Council also levies CIL—which covers many of these categories—I flagged the potential for double-counting costs. I raised this with our solicitor and provided a summary for my director, helping ensure the agreement was legally robust and not duplicative.
How have you accounted for legal and regulatory costs in site promotion or marketing?
At Frampton Cotterell, following agreement of the fixed layout, I reviewed the adopted CIL Charging Schedule and calculated the CIL liability based on the proposed unit numbers. I cross-checked the figure with our planning consultant and prepared a cost summary table showing estimated CIL and S106 contributions. This was included in the disposal pack issued to housebuilders so they could factor the costs into their bids. I also inputted the figures into the development appraisal to assess profitability and ensure informed internal decision-making.
