{"id":2290,"date":"2023-11-01T10:32:56","date_gmt":"2023-10-31T23:32:56","guid":{"rendered":"https:\/\/www.upco.com.au\/?p=2290"},"modified":"2023-11-01T11:24:45","modified_gmt":"2023-11-01T00:24:45","slug":"what-is-a-section-173-agreement","status":"publish","type":"post","link":"https:\/\/www.upco.com.au\/what-is-a-section-173-agreement\/","title":{"rendered":"WHAT IS A SECTION 173 AGREEMENT?"},"content":{"rendered":"\n

When <\/em>Victoria\u2019s recent planning reforms<\/em><\/a> were announced, section 173 agreements were referred to more than once. So, we thought we\u2019d have UPco Associate Director Sarah Thomas explain what they actually are, and how they affect those looking to buy and develop land.<\/em><\/p>\n\n\n

\n
\"\"<\/figure><\/div>\n\n\n

First thing\u2019s first. What is a <\/strong>section 173 agreement?<\/strong><\/strong><\/h3>\n\n\n\n

Section 173 agreements (s173 agreements for short) can have a significant impact on how you can use or develop your land.<\/p>\n\n\n\n

Essentially, it\u2019s a legally binding agreement that is made voluntarily between a responsible authority (such as a council) and a current or prospective landowner. It places specific restrictions or conditions about how the land is used and\/or developed.<\/p>\n\n\n\n

For example, a s173 agreement may stipulate that certain trees on the site are protected, or that the landowner must have public liability insurance for a pedestrian path that\u2019s within the site boundaries. S173 agreements also often relate to affordable housing obligations and environmental audit requirements \u2013 they can even include design guidelines (this is often seen in new estates). <\/p>\n\n\n\n

The power to enter into these agreements is outlined in section 173(1A) of the Planning and Environment Act<\/em> 1987 (otherwise known in the planning world as the Act).<\/p>\n\n\n\n

How is it different to a permit condition or <\/strong>restrictive covenant<\/strong>?<\/strong><\/h3>\n\n\n\n

A s173 agreement is recorded on the title to the land. This means that it can impose an ongoing obligation on landowners and the responsible authority, often binding future landowners in perpetuity.<\/p>\n\n\n\n

S173 agreements also differ from restrictive covenants. The latter are typically negative, preventing certain things from happening, such as building anything on a certain site apart from one private dwelling. In contrast, s173 agreements can be positive (such as making a landowner commit to providing access to a shared walkway, or providing and maintaining a certain amount of affordable housing).<\/p>\n\n\n\n

What are the pros and cons of a s173 agreement?<\/strong><\/h3>\n\n\n\n
Pros<\/td>Cons<\/td><\/tr>
They can help ensure that planning outcomes are achieved and have long-lasting impacts (although it\u2019s important to note that they CAN expire). They also don\u2019t contradict the Planning Scheme, so there\u2019s no room for dodgy loopholes.<\/td>They can be expensive, carry an administrative burden and can be difficult to remove or vary. They leave the responsible authority with a great deal of power.  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Generally speaking, s173 agreements shouldn\u2019t be imposed where a permit condition would be sufficient.<\/p>\n\n\n\n

How do I know if my land is affected by a s173 agreement? \u2026 and what if it is?<\/strong><\/h3>\n\n\n\n

S173 agreements are listed on the title to the land, so you can simply search to find out \u2013 ideally before you purchase the land or, if you already own the land, before you lodge a planning application. If you find that a s173 agreement does apply, you\u2019ll need to obtain legal advice. This will help you understand the implications of the s173 agreement, and how you (as a landowner) may be affected.<\/p>\n\n\n\n

In very rare cases, s173 agreements can be removed, amended or varied \u2013 but only by the responsible authority.[1]<\/mark><\/a> If you\u2019re seeking this type of change, the first step is to request \u2018in principle support\u2019 from the responsible authority. If this isn\u2019t granted, then there is no right to appeal.<\/p>\n\n\n\n

If \u2018in principle support\u2019 is granted, here\u2019s what needs to happen:[2]<\/mark><\/a><\/p>\n\n\n\n

    \n
  1. The landowner lodges a formal application to the responsible authority.<\/li>\n\n\n\n
  2. All parties are notified of the proposal (including anyone the responsible authority believes will be impacted).<\/li>\n\n\n\n
  3. The responsible authority decides the outcome and notifies all parties.<\/li>\n\n\n\n
  4. The landowner pays the costs of notice and the preparation of any amended s173 agreement.<\/li>\n\n\n\n
  5. If no appeals are lodged,[3]<\/a> <\/mark>the responsible authority registers the amended with the Registrar of Titles.<\/li>\n<\/ol>\n\n\n\n

    What are the key take-aways when it comes to <\/strong>s173 agreements?<\/strong><\/h3>\n\n\n\n

    In short, these are binding legal agreements that can be difficult to change. While they can help achieve planning objectives, they can also be costly. We think there are often better pathways and s173 agreements should be a last resort.<\/p>\n\n\n

    \n
    \"\"<\/figure><\/div>\n\n\n

    Any questions (about this or anything else planning related)? Send them our way and we\u2019ll do our best to answer \u2013 just email info@upco.com.au<\/a><\/em><\/p>\n\n\n\n


    \n\n\n\n

    [1]<\/a> The responsible authority is given this power under section 178 of the Act.<\/p>\n\n\n\n

    [2]<\/a> This is required under sections 178A to 178I of the Act.<\/p>\n\n\n\n

    [3]<\/a> Appeal rights (for parties, objectors and affected persons) are provided in sections 184 to 184D of the Act.<\/p>\n","protected":false},"excerpt":{"rendered":"

    When Victoria\u2019s recent planning reforms were announced, section 173 agreements were referred to more than once. So, we thought we\u2019d have UPco Associate Director Sarah Thomas explain what they actually are, and how they affect those looking to buy and develop land. First thing\u2019s first. What is a section 173 agreement? Section 173 agreements (s173 […]<\/p>\n","protected":false},"author":3,"featured_media":2291,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"upco_global_settings":"","upco_interactions":"","footnotes":""},"categories":[100],"tags":[],"acf":[],"yoast_head":"\nWhat is a section 173 agreement? \u2013 UPco<\/title>\n<meta name=\"description\" content=\"When Victoria\u2019s recent planning reforms were announced, section 173 agreements were referred to more than once. 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