CIL, Section 106 & Planning Conditions - What Conveyancers Need to Know

Introduction

Conveyancers acting for purchasers of new-build properties are typically provided with a vast amount of documentation which needs to be reviewed in a short space of time.

Developers’ contract packs often include copy section 106 agreements which typically contain numerous planning obligations. The task of trying to decide which provisions of the agreement require further investigation can be tricky, given that there is so much paperwork to check.

In addition, the risks inherent in new-build purchases have been exacerbated by the Community Infrastructure Levy (‘CIL’), which is enforceable as a local land charge. Indeed, the Con 29 (local search) form now contains 13 specific questions about the Levy.

This seminar will examine many of the key legal and practical issues that need to be addressed on a new-build purchase when raising additional enquiries and advising a buyer client.

What You Will Learn

This course will cover the following:

• Why are there so many questions in the Con29 (local search) form about the levy?
• CIL: What are the implications of a charging schedule?
• CIL: What is assumption of liability and default liability notices?
• If CIL has not been paid in full by completion, what are the risks to the buyer and any mortgagee?
• What enforcement powers do the council have?
• What are the pitfalls of regulations relating to the exemptions for self-build housing and residential extensions/annexes?
• Key lessons to be learned from CIL appeal decisions
• What is the relationship between CIL and section 106 planning obligations?
• Planning obligations or planning conditions?
• Which section 106 provisions should conveyancers be concerned about (e.g. affordable housing)?
• Which obligations in section 106 agreements are enforceable as local land charges?
• How can section 106 provisions be modified or discharged?
• Why are pre-commencement and pre-occupation conditions, and conditions relating to time limits, so important on new-build developments?
• How can planning conditions be modified or discharged?