Section 173 Agreements

What is a section 173 Agreement?

A section 173 Agreement is a legal contract made between the landowner, Council and another party or parties under section 173 of the Planning and Environment Act 1987.

A landowner is normally the other party to the Agreement, however, in some cases a third party such as a referral authority may also be involved. Mortgagee’s consent will be required to any section 173 Agreement Council deem applicable.

Why would a section 173 Agreement be required?

A s173 Agreement may be required as a condition of permit. An Agreement may be used that restricts how the land can be used. For example:

• Management of a wastewater asset
• To prevent the land from further subdivision
• For staged developments
• To prevent a dwelling being constructed on a new rural lot created by subdivision
• To provide ongoing implementation of an approved Farm or Land Management Plan
• To allow the subdivision of the land to occur prior to the completion of the development on the land in accordance with an approved development
• To protect particular characteristics of the land to be retained

Landowner Responsibility

If a Permit issued to a landowner contains a condition/s that you as the landowner are required to arrange for the preparation, signing and lodgement with the titles office. All expenses incurred are the responsibility of the landowner.

Preparation and registration of a section 173 Agreement

To ensure that a section 173 Agreement is a legally binding agreement and all parties are protected and bound by the terms and conditions contained within an agreement, it should be prepared by a qualified member of the legal profession with appropriate experience of the Victorian planning system.

Council has negotiated reasonable fees and disbursements for the preparation through to registration of the Agreement on title. Harwood Andrews solicitors is Council’s legal representative.

As the landowner, you may choose to draft or have your legal representative draft a section 173 Agreement. However, Council will refer all agreements not drafted by its preferred solicitor to Harwood Andrews solicitors for review. This is to ensure that Council’s interests are protected. All costs associated with any review of a section 173 Agreement are the responsibility of the landowner. Council does not draft section 173 Agreements.

It is important to understand that Harwood Andrews solicitors is the only solicitor holding a Verification of Identification for Council for registration of a section 173 Agreement with the titles office.