Section 173 Agreements

A Section 173 Agreement is a legal contract made between 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, while in some cases, a third party such as a referral authority may also be involved.

A Section 173 Agreement will generally be a requirement of a condition placed on the applicant’s planning permit. Not all planning permits require one, but the applicant will need to read the conditions carefully and act on it, if there is a requirement to do so.

An Agreement generally provides for continuous restrictions or on-going requirements on the use or development of the land. A Section 173 Agreement may be used, for example:

To allow the subdivision of the land to occur prior to the completion of the development of the land, in accordance with an approved development permit,
To prevent the further subdivision of land,
To prevent a dwelling being constructed on a new rural lot created by subdivision,
To provide for the provision of infrastructure,
To provide ongoing protection and management of native vegetation or to require implementation of Offset Management Plan,
To require ongoing implementation of an approved Land Management Plan; and
To establish monetary contributions for road construction.

Who prepares the agreement?

All Section 173 Agreements required by Council are prepared by Beck Legal. You will be required to provide Beck Legal with a copy of the following documentation:

The planning permit
Any endorsed plans
Certificate of Title (if available)
A written request for Beck Legal to prepare the agreement
Your contact information (telephone, email and postal address)

Any reasonable costs and expenses (including legal expenses) incurred with a Section 173 Agreement must be borne by the applicant. This will include the cost of any review undertaken. This is consistent with the requirement of relevant conditions placed on planning permits. A flow chart at the end of this sheet provides an outline of the process for Section 173 Agreements.

Contact Details:

Breanna Barnes
Client Manager – Local Government, Planning & Litigation
Beck Legal
177 View Street BENDIGO VIC 3550
Phone: 03 5445 3333
Email: bbarnes@becklegal.com.au Website: www.becklegal.com.au

Registration of the agreement

The Section 173 Agreement must be approved and signed by all parties. It is then the responsibility of Beck Legal to apply to Land Victoria to have the Agreement registered on the Certificate of Title.

A Section 173 Agreement is registered on the Certificate of Title of the land to which it applies. This ensures that all future owners are aware of, and bound by, the requirements of the Agreement.

Can the Agreement be amended?

To change the Agreement, all parties including Council, must consent to the proposed changes.

The application form, “Amending or Ending a Section 173 Agreement Application Form” is to be completed and submitted to Council for approval.

When does the agreement end?

Whilst generally intended to have ongoing effect, an Agreement can end after a specified event or time period outlined in the Agreement. A person may also apply to Council if the Agreement is no longer considered relevant.

Please contact the Planning Team if you have any queries regarding Section 173 Agreements.

Section 173 Agreement timeline

Planning Permit condition requires preparation of a Section 173 Agreement

Applicant engages the services of Beck Legal to prepare the agreement

Agreement drafted by Beck Legal and sent to Council to be reviewed and amendments (if any) are added and re-sent, or agreement approved and ready for signing

Agreement sent to all relevant parties for signing and returned to Beck Legal

Beck Legal will apply to the Registrar of Tiles to register the signed Agreement

Invoice sent to applicant for payment

Confirmation received by Beck Legal from the Titles Office of the registration of the Agreement on the Certificate of Title