Section 173 Agreements

Section 173 Agreements

A Section 173 Agreement will generally be a requirement of a condition placed on your Planning Permit. Not all Planning Permits have this requirement but you will need to read the conditions carefully and act on it if required to do so.

A Section 173 Agreement is a legal contract made between Council and any other party or parties, under Section 173 of the Planning and Environment Act 1987. There are a number of requirements set by Council and the Title Registration Service that you, as the landowner, need to meet when entering into a Section 173 Agreement.

What must be considered when preparing a Section 173 Agreement

An agreement specifies what a person can or cannot carry out. An Agreement will provide for specific requirements set out for Council where a Planning Permit condition may not be enforceable or where there is a specific obligation that is required to run with the Title of the land (so that future landowners are bound by the requirement).

An Agreement may provide for:

  • The prohibition, restriction or regulation of the use or development of the land
  • Conditions which the land may be used or developed for specified purposes
  • Any matters intended to achieve or advance the objectives of planning in Victoria or the objectives of the planning scheme or an amendment to the planning scheme

A Section 173 Agreement may be used:

  • to establish monetary contributions for road construction
  • to prevent the further subdivision of land
  • to provide for the provision of infrastructure
  • to protect native vegetation
  • To provide for maintenance of a facility or property

Who prepares a Section 173 Agreement?

Agreements are normally prepared by your solicitors. The cost of preparing agreements is met by you, the applicant.

What must be considered when preparing a Section 173 Agreement?

The following requirements are set out by the Title Registration Service and should be forwarded to your solicitor to assist in the preparation of an agreement:

  • Attachments must not be included with Agreements. If a reference must be made to a particular plan or permit, simply refer to its reference number, rather than attaching a copy of the document.
  • In some cases, it may be appropriate to attach a diagram or plan. This should be done where only part of the land in a title is affected by the Agreement and the diagram or plan assists in defining the affected part.
  • Any essential attachment must be referred to in the body of the agreement.

What is the process for Section 173 Agreements?

  • We request your solicitors forward a draft copy of the agreement to the Council Planner involved in your application to ensure that all requirements set by the planning permit conditions have been included. Confirmation that the agreement is suitable to process will be directed to your solicitor.
  • Three (3) copies of the agreement, signed by all parties, must then be submitted to Council for signing by our delegate. One copy of the agreement will be sent back to you, one kept by Council and the third copy is forwarded to the Title Registration Service for registration.
  • A fee for Council signing and sealing a Section 173 Agreement is required.
  • Council wait for confirmation of a "dealing number" (formal proof of registration of the agreement on your Title). Notification will be forwarded to you via your representative when this is received.