Section 106 Planning Agreement

pimento

We're buying a five year old house on a development where the roads are yet to be adopted by the local council but the house is freehold and there is no estate management company.

My conveyancing solicitor has said that they are waiting for our vendor to provide the Section 106 paperwork.

The EA for the vendor has said to me that we won't get it as the roads aren't adopted yet.

I'm happy to be led by my solicitor but is this a deal breaker if the paperwork isn't available?

Oxid8uk

Is the S106 agreement not on the planning portal?

I'm on a large new build development of which not all the roads are adopted yet. S106 agreement paperwork was sent to our solicitor from the developers solicitor and is also available to view on the planning portal.

pimento

My house isn't a new build. I'll be the third owner.

I don't know if it's available on the planning portal. I'd never heard of it until yesterday afternoon.

I was immediately suspicious when the vendor's EA told me that I didn't need it and my solicitor said I did.

ethank

A section 106 generally does not cover the estate roads. It covers "Planning obligations" such as community facilities, existing highways, public transport, new schools, affordable housing etc, and is in place as a legally enforceable obligation by the developer to mitigate the impacts the development.

Roads are adopted under either section 37 or 38 of the Highways Act (More commonly section 38 nowadays accompanied with a bond). So it would be this agreement that you would need.

If you live on a development that is phased, then adoption will generally take place after the final phase is completed. This is because the roads may continue to be used as a means of access by construction traffic which might damage the road which is now owned by the local authority.

pimento

That's helpful ethank thank you.

The development was finished in 2014 as far s I know and there is no building going on. The roads definitely haven't been adopted yet, though.

ethank

Probably because they are not at an adoptable standard.

Who was the developer?

Have you contacted your local highways department?

rachel230

Be aware that the councils are opting out more and more of adopting these new estates. It suits them financially. It also suits the developer who can then appoint a managing agent to fleece the home owners by way of unregulated estate charges.
Unless you are given 109% guarantee that the council will adopt I would think very carefully about this purchase.
Unadopted estates are a license for unscrupulous management companies to extract as much money as possible from the "victims" living on the estate. It is an unregulated business.
Estate charges are on top of your regular council tax as well!