When entering into an agreement under section 75, the financial obligations imposed on the landowner can be a costly surprise if they are not taken into account when filing the application for construction. It is also important to note that the agreement is country-bound under Section 75, so the conclusion of such an agreement has important consequences. They are produced most often (but not exclusively) in Scotland in accordance with section 75 of the Town and Country Planning (Scotland) Act 1997. The Section 75 agreements are largely consistent with the Section 106 agreements in England and Wales. The content of this website is for information purposes only and should not be considered as legal advice and should not be considered as a substitute for a specific consultation. Morton Fraser LLP is not responsible for the content of third party websites to which this website links. Morton Fraser LLP is authorised and regulated by the Financial Conduct Authority. § 75 Agreements are used when the conditions imposed by the building permit itself are not appropriate. While planning conditions control how a project is built and used, Section 75 agreements generally provide for financial contributions and all requirements affecting land outside the building permit area (outside the “red border”). We have technical expertise in order planning.

§ 75 Agreements are subject to stricter legal requirements than a standard commercial contract. They must limit or regulate the development or use of land and meet the tests of the Scottish Government Circular. Each planning authority has its own negotiating approach and preferred formulation. For the feasibility of a project, it may be essential to understand the impact of the agreements set out in Section 75 and to ensure that they are formulated appropriately. A section 75 agreement, sometimes referred to as a planning obligation, is a contract between a landowner and the city council as part of the construction application process. We set up duel diligence, including advising lenders and land buyers on their potential risk of liability if there is an existing agreement under Section 75. In addition, we help minimize planning risks by negotiating specific warranties and indemnifications and conducting direct debit interviews on behalf of our clients. Between planning authorities and developers, there will always be differences of opinion on the amount of planning benefits to be paid due to the different objectives of the public and private sectors. The Scottish Government has clarified that planning obligation payments should only be requested if they meet all the policy tests set out in their 2012 Circular, i.e. the commitments are as follows: as with any contract, if you are asked to enter into a Section 75 agreement as part of your construction application, it is important that you speak to your lawyer as often as possible, to navigate the process….