Sem categoria

Difference between Section 106 and Section 278 Agreements

As a professional, we understand the importance of providing valuable and informative content that is easy to read and understand. In this article, we will discuss the difference between Section 106 and Section 278 agreements.

Section 106 and Section 278 are two terms that are often used interchangeably in the development industry. However, they are two distinct legal agreements that serve different purposes.

Section 106 agreements are legal agreements that are imposed on developments to mitigate the impact of the development on the surrounding area. These agreements are commonly used to secure affordable housing contributions, public open spaces and community facilities.

Section 278 agreements, on the other hand, are legal agreements which govern the design, construction and maintenance of highways and other transport infrastructure. These agreements are necessary when a development is likely to affect the local highway network.

Section 106 and Section 278 agreements are often required in conjunction with each other. This is because a development that requires a Section 278 agreement is likely to have an impact on the local area and may require a Section 106 agreement to mitigate that impact.

It is important for developers to understand the differences between these two types of agreements and to ensure that they comply with all relevant regulations. Failure to comply with the legal agreements can result in fines, delays and potential legal action.

In summary, Section 106 and Section 278 agreements are two distinct legal agreements that serve different purposes in the development industry. Developers should ensure that they comply with all relevant regulations to avoid any potential legal issues.