When purchasing a property, it`s important to understand any agreements or restrictions that may impact your ownership. One such agreement is a Section 106 agreement registered with the Land Registry.
What is a Section 106 agreement?
Section 106 agreements are legal agreements between a developer and a local planning authority. They are used to mitigate the impact of a development on the surrounding community and can include requirements such as the provision of affordable housing, contributions to local infrastructure, and restrictions on the use of the property.
Why is it registered with the Land Registry?
Once a Section 106 agreement is agreed upon, it is often registered as a legal charge against the property with the Land Registry. This means that anyone looking to purchase the property will be made aware of the agreement and any obligations or restrictions that come with it.
What do I need to know as a potential purchaser?
If you`re considering purchasing a property that has a Section 106 agreement registered with the Land Registry, it`s important to review the agreement and fully understand any obligations or restrictions outlined within it. This may include restrictions on the use or sale of the property, requirements for maintenance or upkeep, or financial contributions towards local infrastructure.
It`s also important to note that any breaches of the Section 106 agreement can result in legal action and potential penalties. So it`s vital to ensure that you fully understand and comply with any obligations outlined within the agreement.
In conclusion, if you`re considering purchasing a property with a registered Section 106 agreement, it`s important to do your due diligence and fully understand the agreement and any obligations or restrictions that come with it. By doing so, you can ensure a smooth and successful purchase and avoid any potential legal issues down the line.
