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AGREEMENTS 8Contents

8.1. Whatisasection173agreement? .......................................................................... 3

8.2 Partiestoanagreement .......................................................................................... 3

8.3 Whenshouldanagreementbeused? .................................................................... 48.3.1 Advantages of agreements ...................................................................................... 48.3.2 When not to use an agreement ............................................................................... 58.3.3 What can an agreement cover? ............................................................................... 5

8.4 Procedureformakingandamendinganagreement .............................................. 68.4.1 Negotiatinganagreement ....................................................................................... 68.4.2 Content of an agreement ........................................................................................ 68.4.3 Availability of agreement ......................................................................................... 7

8.5 Theformofanagreement ...................................................................................... 78.5.1 Dateandpartiestoagreement ................................................................................ 88.5.2 Recitals ................................................................................................................... 88.5.3 The Agreement ........................................................................................................ 8

8.6 Procedureforrecordinganagreement ................................................................. 10

8.7 Amendingorendinganagreement ...................................................................... 118.7.1 Step 1 – Responsible authority’s in principle support ........................................... 128.7.2 Step2–Noticeoftheproposal-‘Advertising’ ...................................................... 128.7.3 Step 3 – Responsible authority’s decision ............................................................. 128.7.4 Step4–Noticeofdecision .................................................................................... 138.7.5 Step5–Implementingthedecision ...................................................................... 13

8.8 Reviewsandenforcementinrelationtoagreements .......................................... 148.8.1 ApplicationtoVCATforanamendmenttoaproposedagreement ....................... 148.8.2 Reviewsinrelationtoendingoramendingofagreements ................................... 148.8.3 ApplicationtoVCATforaninterpretationofanagreement .................................. 15

8.9 Otheragreements ................................................................................................. 15

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AGREEMENTS 88.1. Whatisasection173agreement?

Theresponsibleauthoritycannegotiateanagreementwithanowneroflandtosetoutconditionsorrestrictionsontheuseordevelopmentoftheland,ortoachieveotherplanningobjectivesinrelationtotheland.

Theseagreementsarecommonlyknownassection173agreements.Thepowertoenterintotheagreementarisesundersection173ofthePlanning and Environment Act 1987 (the Act).

Likeotheragreements,asection173agreementisalegalcontract.However,thebenefitofasection173agreementisthatitcanberecordedonthetitletothelandsothattheowner’sobligationsundertheagreementbindfutureownersandoccupiersoftheland.Asection173agreementcanalsobeenforcedinthesamewayasapermitconditionorplanningscheme.

Thepurposeofanagreementistomakeiteasiertoachieveplanningobjectivesforanareaorparticularparceloflandthanispossiblewhenrelyingonotherstatutorymechanisms.

8.2 Partiestoanagreement

TheActprovidesthatasection173agreementcanbeenteredintobetweenaresponsible authority and an owner of land (normally the registered proprietor) or a purchaseroflandinanticipationofthatpersonbecomingtheowner.

Wheretheagreementisenteredintowithaprospectiveowner,itdoesnotbindtheexistingownerunlesstheexistingowneragrees.Normally,anagreementwiththeprospectiveownerwillspecifythattheagreementdoesnotcommenceoperationuntilthat person becomes the owner of the land.

Providedtheresponsibleauthorityandowner(orprospectiveowner)arepartiestoasection173agreement,otherpersonsorbodiesmaybeadditionalpartiestotheagreementandbecomeboundbythetermsoftheagreement.Thismayinclude,forexample:

• a planning authority or referral authority where it is useful for that body to coordinateitspowersorfunctionsinrelationtotheland;or

• a developer or occupier with an interest in the development or use of the land.

PEA s. 173

PEA s. 173

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Itisnotpossibleforasection173agreementtobeenteredintowithadeveloperoroccupieroflandwithouttheownerorprospectiveowneralsobeingaparty.Thisisbecausetheownermustagreetotheobligationsundertheagreementbeingrecordedonthetitletotheland.

Afteranagreementhasbeenenteredinto,partsofthelandwhicharesubjecttothe agreement may pass into separate ownership through subdivision or by sale of separate lots.

Ifsuchlandistransferredtoanotherperson,thenewownerbecomesanadditionalpartytothatagreement.Thismeansthatobligationsunderanagreementareassignedto subsequent owners of separate holdings.

8.3 Whenshouldanagreementbeused?

Beforedecidingtouseasection173agreement,aresponsibleauthorityshouldcarefullyconsiderothermechanismsavailabletoachieveitsdesiredplanningobjective.

Section173agreementscanbecomplexandcostlytoadministerandaredifficulttoamendorend,particularlyaftertheaffectedlandissubdivided.

8.3.1 Advantagesofagreements

Theadvantagesofasection173agreementinclude:

• itcanberecordedonthetitletolandandbecomebindinguponfutureowners

• unlikeaplanningschemeprovisionorpermitcondition,whichallowssomethingtobedone,asection173agreementcanexpresslyrequiresomethingtobedone.Thisisparticularlyusefulwherearesponsibleauthoritywantstoguaranteecertainoutcomespriorto,oraspartof,thegrantingofaplanningpermitforaspecificuseor development

• anagreementcansetoutalevelofdetailorsite-specificinformationwhichisdifficulttoincludeinapermitconditionorotherformofplanningprovision

• unlikerestrictivecovenants,asection173agreementcanincludepositivecovenantsandthusincludeperformancecriteriaormoreinnovativearrangementsfor the use or development of land

• anagreementcancreatepositiveobligationsonaresponsibleauthorityorotherpartiesandthusachievebroaderplanningobjectivesthanapermit

• anagreementcancontinuetooperateandimposerestrictionsonlandeveniftheneed for a permit ceases and the need to operate under that permit no longer exists.

PEA s. 182A

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8.3.2 Whennottouseanagreement

An agreement cannot and should not be used as a basis for trying to extend an authority’spowersundertheAct.Asection173agreementcannotauthoriseanyuse or development contrary to the planning scheme or a permit. This means that anagreementcannotprovideforlessrestrictiveprovisionsthanthoseinaplanningschemeorpermit,suchasallowingauseordevelopmentwhichisotherwiseprohibited.However,anagreementcouldprovideformorerestrictiveprovisionsthanthoseintheplanningschemeorapermit,suchasprohibitingorplacinggreaterrestrictionsonauseordevelopmentwhichisotherwiseallowed.

Anagreementisnotasubstituteforplanningprovisionsandshouldnotbeusedifanobjectivecanbemetthroughapermitcondition.Beforerequiringasection173agreement,theresponsibleauthoritymustensurethattheissueinvolvedreallyrequiresanagreementratherthanaclearlywordedpermitcondition.

Forexample,anagreementshouldnotsimplyprovideforcertainworkstobedonetothesatisfactionoftheresponsibleauthority,whenasimilarconditioncouldjustaseasily have been included in a permit.

An agreement is a contract and should not be entered into without prior legal advice. Ifanagreementisnotcarefullydrafted,theremaybedifficultiesinenforcingoramending it.

8.3.3 Whatcananagreementcover?

TheActallowsthesection173agreementtoprovidefor:

• theprohibition,restrictionorregulationoftheuseordevelopmentofland

• conditionssubjecttowhichthelandmaybeusedordevelopedforspecifiedpurposes

• anymatterintendedtoachieveoradvancetheobjectivesforplanninginVictoriaunder the planning scheme or an amendment.

Thisprovidesawidescopeforagreements.However,thereshouldgenerallybeaconnectionbetweentheagreementandthespecificplanningoutcomessoughttobeachievedinrelationtothelandoverwhichtheagreementwillberecorded.

Section173agreementshavebeenusedinawidevarietyofmatters.Someexamplesare:

• coordinationofdevelopmentwithadjoininglandownersorotherregulatoryauthorities

• to provide for staged developments

• rehabilitationofproperty,repairoftheenvironment,heritageprotectionorvegetationprotection

• provisionofcommunityinfrastructureorspecificdevelopmentinfrastructure–suchasopenspaceorfacilitiesonthelandornearbyland

• securingdevelopercontributions

• restrictionsonchangeofuse,orabandoningexistinguserights

PEA s. 180

PEA s. 174

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• limitsonfuturedevelopment,includingneighbourhoodagreementstoprotectneighbourhood character

• planning‘trade-offs’,suchasaplanningconcessionononepropertybasedonacommitment to do something on another property.

8.4 Procedureformakingandamendinganagreement

8.4.1 Negotiatinganagreement

Negotiatingagreementscanbeinvolvedandtime-consuming.Thereforetheobjectivesmust be clear and must relate to the planning approval process. The most successful agreementisoneinwhichbothpartiesactivelyconsiderandnegotiateconditions,withoutviewingitasatechniqueforrestrictingdevelopmentbytheresponsibleauthority.Thefocusofallpartiesshouldbejointproblem-solvingandachievingaperformance-orientedplanningoutcomefortheland.

Whileagreementsaregenerallynegotiated,asection173agreementcansometimesberequiredbyaplanningschemeorapermitconditionpriortothecommencementofaspecificuseordevelopment.Toavoidanyperceptionthattheresponsibleauthorityhasanunduenegotiating‘advantage’,anauthorityshouldbecarefulnottoactunreasonably in seeking planning concessions or other covenants in the agreement beyondthosenecessarytoachieveitsproperplanningobjectivesfortheland.

Toavoiddelaysinnegotiations,itisusefulfortheresponsibleauthoritytodelegatenegotiatingpowerstoofficerswhocanliaisewiththerelevantpartiesandreporttotheauthority as required.

8.4.2 Contentofanagreement

TheActdetailsthemattersanagreementcanaddress.Anagreementcanbemorepositiveandspecificthanapermitcondition.Inthiswayitcanbeusedasaneffectivemeansofensuringperformanceofobligationsand,ifthereisaneed,attachingtheobligationsintheagreementtotheland.

Anagreementmustbindtheownerofthelandtothecovenantsspecifiedintheagreement. This means that the primary purpose of the agreement is to set out the owner’sobligationsinamannerwhichcanbeclearlyenforcedagainsttheownerorfuture owners of the land.

Caremustbetakenbyaresponsibleauthoritywhendefiningitsownobligations(ifany) under an agreement. The responsible authority has no power to enter into an agreementwhichobligesittoexerciseastatutorydiscretioninaparticularmannerinthefuture.Forexample,ifanownerispreparedtoenterintoanagreementwhichisconditionalupontheapprovalofaplanningschemeamendment,thentheagreementshouldspecifythatitdoesnotcommenceuntiltheamendmentisapproved.Iftheamendmentisnotapproved,theownerwillnotbeboundbytheagreement.Theagreementshouldnotattempttobindtheresponsibleauthoritytothefutureapprovaloftheamendmentorthegrantofapermit,asthiswouldfetterthefutureexerciseofitsstatutorydiscretionandbebeyonditspower,andthereforebesubjecttolegalchallenge.

PEA s. 188

PEA s. 174

PEA s. 174(1)

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An agreement must not require or allow anything to be done which would breach a planning scheme or a permit. An agreement can become unnecessarily complicated byincludinganarrayofmattersbetweentheresponsibleauthorityandtheowner,orbetweentheownerandotherpartiestotheagreement,withdifferentorunspecifiedendtimes.Anyobligationsetoutinasection173agreementshouldonlybeputinplacewiththeintentionthatitwouldrunwiththelandasacovenantandbeenforcedunder the Act.

Bondsandguaranteesmayformpartofanagreement,withprovisionforforfeitureofmoneyiftheownerfailstocarryouttheagreementtothesatisfactionoftheresponsible authority. This does not apply if the responsible authority is entering into an agreement with a Minister. An agreement must not require a Minister to provide a bond or guarantee to the responsible authority.

Anagreementwillusuallybeginimmediatelyafteritisexecuted(bywayofsignatureofallpartiestoitinthepresenceofatleastoneadultwitnesswhoisnotapartytotheagreement).However,theActallowsadatetobespecifiedorforthecommencementtobetiedtoaspecifiedevent,includingaplanningschemeamendmentcomingintooperationorapermitbeinggranted.Thiscanbeusefuliftheobligationsundertheagreementaretiedtoaspecificuseordevelopment.Thesametriggerscanbeusedforthe ending of an agreement. An agreement can also be ended by agreement between the responsible authority and all persons bound by any covenant in the agreement.

8.4.3 Availabilityofagreement

Theresponsibleauthoritymustkeepacurrentcopyofeachagreementatitsofficeandmakeitavailableforpublicinspectionfreeofcharge.

Ifanagreementisrecordedonthetitletotheland,thecopylodgedforrecordisavailableforinspectionaspartofasearchofthecertificateoftitle.

Ifthecomingintoeffectofanagreementisconditionalonaplanningschemeamendmentcomingintooperation,andtheagreementisexecutedpriortoexhibitionoftheamendment,acopyoftheagreementmustbeforwardedtoallpartieswhoreceive a copy of the amendment.

8.5 Theformofanagreement

Anagreementmustclearlyandpreciselysetouttheobligationsandrightsoftheparties.Generality,vaguenessandambiguitymustbeavoided.

Theagreementmustbeinwriting,madeundersealandsignedbyallthepartiesinthe presence of at least one adult witness who is not a party to the agreement. For theresponsibleauthorityoranypartywhichisacompany,thecommonsealoftheauthorityorcompanywillneedtobeaffixedinaccordancewithitslegalrequirements.Wherethereisaclearwrittendelegation,anofficeroftheresponsibleauthoritymaybe able to seal the agreement on the authority’s behalf.

EnsurethatsufficientoriginalcopiesoftheagreementaresignedandsealedtocovertheneedsoftheRegistrarofTitlesforrecordinginaccordancewithsection181.Copiesare also needed for each party and the responsible authority.

PEA s. 180

PEA s. 175

PEA ss. 176, 177

PEA s. 179

PEA s. 17(2)

PEA s. 174(1)

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The basic elements of an agreement are listed below to give some insight into the sorts ofthingswhichneedtobeconsideredbeforeseekinglegalassistanceindraftingthedocument.Thisinformationisnotnecessarilyexhaustive.

8.5.1 Dateandpartiestoagreement

Theheadingoftheagreementshouldcontainthedateoftheagreementandidentifytheparties,forexampletheresponsibleauthorityandtheindividualorcompanywhoowns the subject land. The name of the owner of the land should be consistent with whatappearsonthetitle.Atitlesearchshouldbeundertakentoconfirmtheownerofthe land.

Addressesshouldbeincludedforallparties.CompaniesshouldincludeanAustralianCompanyNumber(ACN).Insomecasestherewillbeadditionalpartiestotheagreement,suchasanothergovernmentagency,adeveloperoranoccupier.Similarinformationshouldbeincludedfortheseparties.

8.5.2 Recitals

Thissectiongivesthebackgroundtotheagreementsothattheoperativeprovisionscanbereadilyunderstood.Itshouldclearlyidentify:

• thelandtobeencumbered,byreferencetothecertificate(s)oftitleonwhichthecovenants will be recorded and also by reference to a plan if appropriate (the street address of the land should also be inserted)

• theowner(orprospectiveowner)oftheland

• why the agreement is being entered into

• themunicipaljurisdictionandtheresponsibleauthorityfortheadministrationandenforcementoftherelatedplanningscheme-forexample,‘thelandiswithintheGumnutPlanningSchemeforwhichtheGumnutCityCouncilistheresponsibleauthority’(alsoaddzoninginformationifthisisrelevant)

• otherparties,ifany,andthebasisonwhichtheyarenecessaryparties.

Theresponsibleauthorityshouldconductatitlesearchtoensurethatalltherelevantlandisreferredtointheagreement;otherwisetheremaybeproblemswithregistrationorenforcement.Thissectionshouldalsoindicatewhetheraplanningpermitoranamendmenttotheplanningschemeaffectsthelandandthebasisoftheagreement.

8.5.3 TheAgreement

Thissectiondetailswhateachpartytotheagreementisagreeingtodo.Dependingonthe detail of the agreement it may include the following:

DefinitionsandinterpretationImportanttermsshouldbedefined.Thishelpstopreventpotentiallegalproblems.Itshouldbeclearlystatedthattheagreementismadepursuanttosection173oftheAct.

EffectofagreementThisrequiresthepartiestoindicatetheirintentiontobeboundbytheagreementandshould indicate that the agreement will run with the land and bind future owners.

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Itiscommonpracticetoincludeatermrequiringtheownertodoallthingsnecessaryto enable the responsible authority to submit the agreement with the Registrar of Titlessothatitcanberecordedontitleinaccordancewithsection181oftheAct.

ProceduraltermsThe linking of the agreement to any planning permit or planning scheme amendment should be set out if necessary.

Thecommencementorcompletiontimesoftheagreementshouldbeclearlysetout,includingwhethercommencementorcompletionistiedtoaspecificevent.

PointsofagreementThe points of agreement detail what each party is undertaking to do and may include abondorguaranteebytheowner.Thecovenantsshouldbeclearlyidentifiedforexample,‘the owner of the subject land covenants that…’. The covenants should be specificandprovidesufficientdetailoftheobligationstoenablethecovenantstobeclearly understood and enforceable.

Therearelegaldifficultiesinincorporatingpersonalobligationsinasection173agreement,intendedforaspecificperson.However,ifforsomereasonpersonalobligationsarebeingincludedinanagreement(suchasaconditionthatisrelevantonlytotheinitialdeveloperoftheland),thesemustbeclearlyseparatedandidentifiedtoavoidconfusionwithanycovenantsthatwillrunwiththeland,andbindfutureownersorotherparties.

The responsible authority should try to foresee how the agreement will operate in the future to ensure that the need for any amendments to the agreement are minimised.Inparticular,iflandaffectedbyanagreementissubsequentlysubdivided,theagreementwillordinarilyaffectallthenewtitlesunlesstheagreementspecifiesotherwise.Thismaynotbewhatwasintendedbythepartiesandmayleadtodifficultiesinamendingtheagreementorreleasingindividualallotments.Wherepossible,theagreementshouldsetouttheeffectoftheagreementinrelationtotheoriginal parcel of land and on any subsequently subdivided allotments.

DisputeresolutionIfanagreementreliesheavilyonperformancecriteria,itmaybeadvisabletoincludeadisputeresolutionclause.TheVictorianCivilandAdministrativeTribunal(VCAT)hasonlylimitedjurisdictiontoresolvedisputeswheremattersrequiretheconsentorsatisfactionoftheresponsibleauthority.

ServiceofnoticesApartytoanagreementmayberequiredtoadviseotherpartiesofcertaininformation(suchaswhencertainworkshavebeencompleted).Inthesecases,theagreementshoulddescribethemannerinwhichthisnoticeistobegiven(forexample,inwriting,withinaspecifiedtimeperiodandtoaspecifiedaddress).

LapseorterminationManyagreementswillalsoincludeatimeclause(thatis,theagreementlapsesafteracertainperiodoftimeorifplanningprovisionsareamended).Agreementscanalsorequiresubsidiaryagreementsatalaterdateandcanmakeprovisionsconditionaluponapprovalfromanotherauthority(forexample,theRoadsCorporation).

PEA s. 177

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CostapportionmentManyagreementslistwhichofthepartiesaretoberesponsibleforanyassociatedcosts.Thisisamatterfornegotiationbetweentheparties,althoughitiscommonfora responsible authority to require that an owner meet the authority’s costs in the preparationofanagreementwheretheagreementisfortheprimarybenefitoftheowner.

8.6 Procedureforrecordinganagreement

Thepurposeofrecordinganagreementontitleistoensurethattheobligationsintheagreement run with the land and therefore bind all future owners of the land.

Anapplicationtorecordanagreementmustbemadewithoutdelay.Theresponsibleauthority should lodge a copy of the agreement with the Registrar of Titles using the prescribedForm18.Afeeispayable.Relevantfeesarespecifiedonthepropertyandlandtitlespageofthedepartment’swebsite.

The Registrar of Titles cannot record an agreement over Crown Land or common property.

Agreements entered into before 28 October 2013 are not obliged to be recorded on title.Thediscretiontorecordtheseearlieragreementsrestswiththeresponsibleauthority. A responsible authority must however apply to record an agreement entered intobefore28October2013,withoutdelay,ifitisamendedafterthatdate.

Theresponsibleauthoritymustkeepacopyofeachagreement,indicatinganyamendmentmadetoit,availableatitsofficeforanypersontoinspectduringofficehours free of charge.

Mortgagee’sConsentTheduplicatecertificateoftitledoesnotneedtobeproducedtotheTitlesOfficetorecordanagreement.TherecordisonlynotedontheoriginaltitleheldattheTitlesOfficeinthesamewayascaveatsandothercovenants.Thismaymeanthatthecustodianoftheduplicatetitle,ifnottheowner(suchasabank/mortgagee),maybeunawareofthemakingoftheagreementand/ortheeffectoftheagreementonitssecurity.

Wherethismaybeanissue,theresponsibleauthoritymayrequiretheownertoeithernotifythemortgageeortoobtainthemortgagee’sconsentbeforetheagreementisestablished,particularlyinsituationswheretheowner’sobligationsundertheagreementcouldmateriallyaffectthemortgagee’sinterests.Itisbesttoinvolvethemortgageeearlyonintheprocess,asarequestfortheirconsenttoolateintheprocess could cause considerable delay if the mortgagee then requires changes to the agreement.

CancellationoralterationofarecordingofanagreementIfanagreementiscancelledoramended,theresponsibleauthoritymust,usingtheprescribedform,telltheRegistrarofTitlestocanceloramendtherecordoftheagreement.

PEA ss. 181, 182; PE Regs r. 59, Form 21

PEA s. 221(4) & (5)

PEA s. 179

PEA s. 183; PE Regs r. 60, Forms 22, 23, 24

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Itisparticularlyimportanttomonitoragreementsthathaveaterminationdateor event included as part of the agreement and to ensure that the Registrar is immediatelynotifiedoftheendingofthatagreement.Thiswillavoidunnecessarycomplicationsforexample,iflandissubsequentlysubdividedandacovenantinadvertently placed on each individual lot because the Registrar was not advised of the ending of the obsolete agreement.

8.7 Amendingorendinganagreement

An agreement may provide that the agreement ends wholly or in part or as to any part ofthelandonorafter:

• thehappeningofaspecifiedevent

• aspecifiedtime

• theendingoftheuseorthedevelopmentofthelandforaspecifiedpurpose.

Iftheagreementdoesnotspecifywhenitends,itcanbeendedbyagreementbetween the responsible authority and all persons who are bound by any covenant in the agreement. An agreement can also be amended in the same way.

However,obtainingtheagreementofallpersonscantakeconsiderabletimeandmaybeimpossibletoachieveifthereisoppositiontotheproposaloralargenumberofpartiesareinvolved.

Wheretheconsentofallpartiestoamendorendanagreementcannotbeachieved,alandowner(oraprospectivelandownerwhohasenteredintoanagreement)canapplyto the responsible authority to have the proposal assessed.

Theproposalcanbetoendtheagreementwhollyorinpartortoenditinrelationtoadefinedpartoftheland.

Theprocessissimilartotheprocessformakinganapplicationforaplanningpermitand can be broken down into the following key steps:

1. Responsible authority’s in principle support

2. Noticeoftheproposal-‘Advertising’

3. Responsible authority’s decision

4. Noticeofdecision

5. Thedecisiontakeseffect

A responsible authority may require the applicant to pay the cost of preparing the amended agreement.

Theresponsibleauthoritymay,onitsowninitiative,alsoproposetoamendorendanagreement.

PEA s. 177

PEA ss. 178A-H; PE Regs r. 55, 56

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8.7.1 Step1–Responsibleauthority’sinprinciplesupport

Anapplicationtoamendorendanagreementmustbemadeinwritingtotheresponsibleauthority.Itmustincludetheinformationsetoutinregulation55andit must be accompanied by the prescribed fee. Currently a fee is prescribed in the PlanningandEnvironment(Fees)Regulations2016.

Section178Bsetsoutanumberofmattersthattheresponsibleauthoritymustconsiderwhenformingaviewaboutaproposal.Themattersrequiredtobeconsideredinclude the purpose of the agreement and the reasons why the responsible authority enteredintotheagreementinthefirstplace.

Theresponsibleauthoritymustnotifytheapplicantandowner(ifadifferentpersontotheapplicant)astowhetheritagrees‘inprinciple’totheproposal.Iftheresponsibleauthoritydoesnotagreeinprinciple,thatistheendofthematter.TheapplicantcannotapplytoVCATforareviewoftheresponsibleauthority’sdecision.

8.7.2 Step2–Noticeoftheproposal-‘Advertising’

If the responsible authority agrees in principle to a proposal (or proposes to end oramendanagreementofitsowninitiative)itmustgivenotice(alsoknownas‘advertising’)oftheproposalto:

• allpartiestotheagreement

• anyotherpersons,iftheresponsibleauthorityconsidersthatthedecisiontoamendor end the agreement may cause material detriment to them.

ThenoticemustincludetheprescribedinformationsetoutinForm18inSchedule1ofthePlanningandEnvironmentRegulations2015(theRegulations).Theresponsibleauthoritymayrequiretheapplicanttopaythecostsofgivingthenotices.

Anypersonwhoisgiven(oroughttohavebeengiven)noticeofaproposalmayobjecttotheproposal,ormakeanyothersubmissioninrelationtotheproposal.

Iftheresponsibleauthoritydoesnotgivenoticeoftheproposalwithin21daysofnotifyingtheapplicantthatitagreesinprincipletotheproposal,theapplicantmayapplytoVCATforareviewofthefailureoftheresponsibleauthoritytomakeadecisiononthematter.ThisisdiscussedfurtherinSection8.8ofthischapter.

8.7.3 Step3–Responsibleauthority’sdecision

Theresponsibleauthoritymustnotmakeadecisiononaproposaluntilatleast14daysafterthegivingofthelastnotice.

Beforemakingadecisionontheproposal,theresponsibleauthoritymustconsideranyobjectionsandsubmissionstogetherwithmattersundersection178Bthatitconsidered in forming its original view on the proposal.

The responsible authority may then decide to:

• amend or end the agreement in accordance with the proposal

• amendorendtheagreementinamannerthatisnotsubstantiallydifferenttotheproposal

• refuse to end or amend the agreement.

PEA ss. 178A, 178B, PE Regs r. 55

PEA ss. 178C, 178D, 178H, 184A(2)(a); PE Regs r. 56, Form 18

PEA s. 178E

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Ifthereareobjectionsorothersubmissionstheresponsibleauthoritymayalsoproposetoamendorendtheagreementinamannerthatissubstantiallydifferenttotheproposal.Iftheresponsibleauthoritydoesdecidetodothis,itmustgivenoticeofthe revised proposal as if it were a new proposal.

8.7.4 Step4–Noticeofdecision

Ifanobjectionorsubmissionislodged,theresponsibleauthoritymustgivenoticeofitsdecisiontoboththeapplicantandeachpersonthatmadeanobjectionorasubmission.Wherenoobjectionsorsubmissionsarelodged,noticeisgiventotheapplicant.

AnoticeofadecisiontoamendorendanagreementmustincludetheinformationsetoutinForm19inSchedule1totheRegulations.

AnoticeofadecisiontorefusetoamendorendanagreementmustincludetheinformationsetoutinForm20inSchedule1totheRegulations.

Whereanoticeofrefusalisissued,itmustsetoutthegroundsfortherefusal.

TheActenablestheapplicant,apartytotheagreement,anobjectorandanyaffectedpersontoapplytoVCATforareviewoftheresponsibleauthority’sdecision.ThisisdiscussedfurtherinSection8.8ofthischapter.

8.7.5 Step5–Implementingthedecision

If the responsible authority decides to amend or end an agreement it must not proceed to do so:

• untilatleast21daysafterthegivingofanyrequirednoticeofitsdecision

• whereanapplicationforreviewismadewithinthe21dayperiod,untilthematterisdeterminedbyVCATorwithdrawn.

If the responsible authority amends the agreement then it must without delay:

• sign the amended agreement

• give a copy of the signed amended agreement to each other party to the agreement.

It is not necessary for the amended agreement to be signed or otherwise agreed to by any other party to the agreement. A party to an agreement is bound by the agreement as amended even though the party did not sign the amended agreement.

The responsible authority must without delay tell the Registrar of Titles of any amendment to an agreement or an ending of an agreement. This must be done in the mannerprescribedundertheregulations.

AnamendmentorendingofanagreementcomesintoeffectonthedayonwhichtheRegistrar of Titles:

• cancels in whole or part the recording of the agreement in the Register under section183(2)

• makesarecordingintheRegisterofthemattersnotifiedundersection183(1).

PEA s. 178F, 184A; PE Regs r. 57, r. 48, Forms 19 and 20

PEA ss. 178G, 178I, 183; PE Regs r. 60, Forms 22, 23 and 24

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8.8 Reviewsandenforcementinrelationtoagreements

8.8.1 ApplicationtoVCATforanamendmenttoaproposedagreement

AlandownercanapplytoVCATforanamendmenttoaproposedagreementwhereaplanningschemeorapermitmakestheuseordevelopmentoflandforspecifiedpurposesconditionaluponanagreementbeingenteredintoandtheownerobjectstoany provision of the agreement.

Theapplicationforreviewmustbemadewithin60daysaftertheapplicantwasgivenacopy of the proposed agreement.

The Tribunal may approve the proposed agreement with or without amendments.

8.8.2 Reviewsinrelationtoendingoramendingofagreements

If the responsible authority decides that it does not agree in principle to a proposal to amendorendanagreement,thematterdoesnotproceedandtheagreementremainsinplaceunchanged.TheapplicantcannotapplytoVCATforareviewofthisinitialdecision.

Reviewsoftheresponsibleauthority’sfailuretomakeadecisionIf the responsible authority agrees in principle to a proposal the applicant may apply toVCATforareviewoftheresponsibleauthority’sfailuretomakeadecisioniftheresponsible authority fails to:

• givenoticeoftheproposalwithin21daysofgivingnoticetotheapplicantthatitagreesinprinciple;or

• decideontheapplicationwithin60daysofgivingnoticetotheapplicantthatitagrees in principle.

TheresponsibleauthoritymaydecidetoamendorendtheagreementatanytimeaftertheapplicationforreviewismadeandmustinformVCAT’sprincipalregistrarifitdoesmakeadecision.However,theresponsibleauthoritymustnotproceedtoamendorendtheagreementorgivenoticeofthedecisionexceptinaccordancewiththeadviceof the registrar.

Reviewsoftheresponsibleauthority’sdecisionTheapplicantmayapplytoVCATforareviewofadecisionbytheresponsibleauthorityto:

• amendorendtheagreementinamannerthatisdifferentfromtheproposal(iftheapplicantreceivedanoticeoftheresponsibleauthority’sdecision,theapplicationforreviewmustbemadewithin21daysaftertheresponsibleauthoritygavethenotice);or

• refusetoamendorendtheagreement(theapplicationforreviewmustbemadewithin60daysaftertheresponsibleauthoritygavenoticeofitsdecision).

Inadditiontotheapplicant,thefollowingpeoplecanapplytoVCATforareviewoftheresponsible authority’s decision to amend or end an agreement:

• a party to the agreement

PEA s. 184; PE Regs r. 61

PEA s. 178

PEA s. 184A; 184F; PE Regs r. 62

PEA s. 184B-E; PE Regs r. 63, 64

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• an objector

• anypersonwhowasentitledtoobjecttoaproposaltoamendorendanagreementbutdidnotobjectbecausethepersonwasnotgivennotice.

Theapplicationforreviewmustbemadewithin21daysaftertheresponsibleauthoritygavenoticeoftheirdecision.

Anobjectorisentitledtonoticeofanapplicant’sapplicationtoVCATforreviewoftheresponsible authority’s decision or failure to make a decision.

VCATdecisiononreviewsVCATmaydirecttheresponsibleauthoritytoamendorendtheagreement,oritmay determine that the agreement should not end or be amended. The responsible authoritymustcomplywiththedirectionwithoutdelay.

8.8.3 ApplicationtoVCATforaninterpretationofanagreement

AspecifiedpersonorapartytoanagreementmayapplytotheVCATforadeterminationofamatterrelatingtotheinterpretationofasection173agreement.

8.9 Otheragreements

Thereareotherformsofstatutoryagreementswhichaffecttheuseanddevelopmentofland.Someoperateinasimilarfashiontosection173agreementsandcanberecordedonatitle.

Examples of other statutory agreements include an agreement:

• forthepreservationofheritageplacesundersection85oftheHeritage Act 1995

• tosecurethecompletionofworksorcompliancewithstatutoryrequirementsundersection21oftheSubdivision Act 1988. (These agreements can be less formal thansection173but,ifexecutedunderseal,canberecordedasiftheyweresection173agreements.)

• relatingtoexemptionsfrombuildingregulationsundertheBuilding Act 1993.

PEA s. 184G

PEA ss. 148, 149A(1A)