What is a Section 173 Agreement?

A Section 173 Agreement is entered into by the land owners and the responsible authority, usually the municipal council to set out conditions or restrictions placed on the land for its use or development.

A Section 173 Agreement is a legal contract that is recorded on the certificate of title to the land and runs with the land.  What that means is that any obligations to the owner under the Agreement will bind any future owners of the land.

The Agreements can cover such things as:

• The prohibition, restriction or regulation of the land use or the development of the land;
• Conditions subject to which the land may be used or developed for specific purposes;
• Rehabilitation of the property, repair of the environment, heritage protection or vegetation protection; or
• Limits on future developments.

The obligations are usually part of the planning permit for the land.

Unlike a planning scheme provision, which allows something to be done, a Section 173 Agreement usually expressly requires something to be done. An Agreement can continue to operate and impose restrictions on the land even if the need for a permit ceases and the need to operate under that permit no longer exists.

If you have any queries about a Section 173 Agreement, please contact Patricia Sheedy on 9707 1155.