Section 106 Agreement Scotland

Section 106 Agreement Scotland: Everything You Need to Know

If you are planning to develop a property in Scotland, you may have heard of a section 106 agreement. This is a legal agreement between a developer and the local authority that imposes certain obligations on the developer in exchange for planning permission. In this article, we will delve into the details of section 106 agreements in Scotland and how they can impact your development project.

What is a Section 106 Agreement?

Section 106 of the Town and Country Planning (Scotland) Act 1997 allows local authorities to negotiate agreements with developers to secure planning obligations. These agreements, also known as planning obligations, are legally binding and enforceable on the developer and subsequent landowners.

Section 106 agreements are used to mitigate the impacts of development on the local community and infrastructure. The obligations can include contributions towards affordable housing, transport, education, healthcare, and environmental improvements. The local authority can also require the developer to carry out specific works, such as road improvements or construction of community facilities.

Why are Section 106 Agreements Necessary?

Section 106 agreements are necessary to ensure that planning permissions are granted on certain conditions. Local authorities use them to ensure that new developments contribute to the social and economic well-being of the area.

Without these agreements, developers could potentially bypass the impacts of their developments on the surrounding communities. Section 106 agreements allow local authorities to ensure that developers` obligations to the community are met, and that they help to improve the infrastructure and amenities in the area.

What are the Advantages of a Section 106 Agreement for Developers?

Section 106 agreements may seem like a burden for developers, but there are advantages as well. The agreement can provide certainty about the planning permission, as the obligations are agreed upon before the development commences. This can reduce risks for developers, as they have a clear understanding of their responsibilities and the costs involved.

Furthermore, Section 106 agreements can help to gain community support for the development. By providing contributions towards affordable housing, educational facilities, and other amenities, developers can show that they are committed to the well-being of the community.

How are Section 106 Agreements Enforced?

Once the Section 106 agreement is signed, it becomes a legal obligation on the developer and subsequent landowners. The local authority is responsible for monitoring and enforcing the agreement, ensuring that the obligations are met in full.

If a developer fails to comply with the Section 106 agreement, the local authority can take enforcement action. This can include fines, court action, or even revocation of the planning permission.


Section 106 agreements are an essential part of the planning process in Scotland. They help to ensure that developments benefit the local community and mitigate any negative impacts. Developers must be aware of their obligations under these agreements, as failure to comply can result in serious consequences.

If you are a developer planning a project in Scotland, it`s essential to seek legal advice to ensure that the Section 106 agreement is fair and reasonable, and that you understand your obligations. With proper planning, you can create a successful development that benefits both your business and the local community.

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