What is a Section 173 Agreement?

A Section 173 Agreement arises under section 173 of the Planning and Environment Act 1987 (the Act).

The responsible authority (usually the municipal council) can negotiate an agreement with an owner of land to set out conditions or restrictions on the use or development of the land, or to achieve planning objectives in relation to the land.

A Section 173 Agreement is a legal contract that is recorded on the Certificate of Title to the land, which is binding to future owners and occupiers of the land. This means that if such land is transferred to another person, the new owner becomes bound by the terms of the Section 173 Agreement.

A Section 173 Agreement can cover things such as:

1. The prohibition, restriction or regulation of the land use or the development of the land;
2. Conditions subject to which the land may be used or developed for specific purposes;
3. Rehabilitation of the property, repair of the environment, heritage protection or vegetation protection;
4. Limits on future developments; or
5. Infrastructure that the landowner needs to build.

The purpose of an agreement is to make it easier to achieve planning objectives for an area or particular parcel of land than is possible when relying on other statutory mechanisms.

If you have any queries about a Section 173 Agreement, please contact our office on (03) 9707 1155.