Does a Section 38 Agreement Bind Successors in Title

When it comes to Section 38 agreements, many property owners are left wondering whether these agreements bind successors in title. The short answer is yes, but there are some nuances to consider.

A Section 38 agreement is a legal agreement between a local authority and a developer that sets out the requirements for the adoption of a new road and the associated infrastructure. This agreement typically includes details of the construction and adoption of roads, footpaths, drainage systems, and lighting.

At the heart of a Section 38 agreement is the obligation for the developer to complete the required infrastructure works to a satisfactory standard. Once these works are complete, the local authority will adopt the road and take responsibility for its maintenance.

But what happens when the property changes hands? Does the Section 38 agreement continue to bind the new owner? The answer is yes, the Section 38 agreement is binding on successors in title.

This means that if you purchase a property that is subject to a Section 38 agreement, you are purchasing the property subject to its obligations. This includes any obligations relating to the maintenance and repair of the road and infrastructure, even if the original developer has since sold the property.

It`s important to note that the Section 38 agreement will only apply to the specific property that was subject to the original agreement. If a neighboring property is developed, a new Section 38 agreement would need to be entered into.

So, what happens if you breach the terms of the Section 38 agreement? The local authority has the power to take enforcement action against you, as the current owner of the property. This could include legal action, fines, or even the revocation of the adoption of the road and infrastructure.

In conclusion, Section 38 agreements are legally binding and will continue to apply to successors in title. If you are considering purchasing a property that is subject to a Section 38 agreement, it is important to carefully review the terms and seek legal advice if necessary. Failing to comply with the terms of the agreement could have serious consequences.