Under Section 106 of the Town and Country Planning Act 1990 as amended, local authorities can require land owners and developers wishing to undertake development within their area to enter into certain planning obligations. These obligations could include financial obligations to local infrastructure projects, contributions to local education and other services. The obligation could extend to the provision of social housing. It is legitimate for a local authority to refuse planning in the event that the Planning Agreement has not been entered into. It is important to note that anybody with an interest in the land will be required to enter into a Planning Agreement and this includes mortgagees. A Planning Agreement can be entered into with the local authority or can be more simply signed by the developer and land owner and presented to the local authority. The latter is known as Unilateral Undertaking.
Planning Agreements should not be entered into by land owners without legal advice. The obligations are given by the land owners and the obligations are enforceable against them by the local authority.