What is a Section 173 Agreement?
If you own property in Victoria, a Section 173 Agreement places restrictions on what you can do with your land.
Key takeaways
- One of the great joys of owning a property is that you can renovateit as you wish. But there are restrictions on how you can develop it.
- In Victoria, restrictions applying to a property are detailed under what is known as a Section 173 Agreement.
- This is a form of contract between a state authority and a landowner that is recorded on a property title.
What is a Section 173 Agreement?
A Section 173 Agreement is an agreement between a Victorian local council or other authority and a landowner. This type of contract places a range of restrictions on how you can use the land you own and it is registered on the title to the land.
How do these agreements work?
Section 173 Agreements get their name from the portion of the Planning and Environment Act 1987 on which they are based. Their basic purpose is to lay down guidelines concerning the development of a neighbourhood and to help satisfy planning objectives.
But they can also be used to ensure that landowners satisfy any conditions outlined in development or subdivision permits they obtain from their local council.
Typical obligations or restrictions
Section 173 Agreements are used to impose restrictions on how land can be used in certain circumstances, including:
- To protect native vegetation.
- To allow subdivision of the land before development of the land.
- To prevent further subdivision of land.
- To provide for ongoing monitoring and reporting of activity undertaken on the land.
- To provide for the maintenance of a particular facility on the land.
- To provide for the creation and maintenance of infrastructure.
- To provide for staged developments.
- To coordinate development with adjoining landowners.
- To set out an agreement for monetary contributions for the construction of a road.
Who enters into a Section 173 Agreement?
In the vast majority of cases, Section 173 Agreements are made between a local council and a landowner, or between a council and a person who it is anticipated will become the owner of the land.
There may also be additional parties who are bound by the terms of an agreement, like a planning authority, or a developer interested in using the land.
A Section 173 Agreement can also be registered over the title to the land in question, so that not only current landowners and occupiers are bound by the agreement, but future landowners and occupiers as well. For example, an agreement may prohibit the development of a particular parcel of land for residential purposes now and for a specific time period into the future.
How can I get a Section 173 Agreement drawn up?
A Section 173 Agreement is an important legal document, so it’s vital to obtain independent legal advice before having a contract drawn up. The process generally runs as follows:
- An agreement is prepared by solicitors acting on behalf of you or your local council. The contract must be prepared to the satisfaction of all parties entering the agreement, so if your solicitor draws up the agreement it will then need to be approved by the council’s solicitors.
- You will need to cover the legal costs incurred in the preparation of the document.
- Any Section 173 Agreement must be approved and signed by the council at a council meeting.
- Following this, the agreement can be registered on the title to the land.
- Applications to register the agreement can be made with Land Victoria and this will usually be done by your solicitor.
- A Dealing Number will be provided as confirmation that the Section 173 Agreement has been registered.
What if I want to change an agreement?
If you want to make any changes to a Section 173 Agreement, all parties will need to approve the changes as it is a binding contract. You can do this by making an application to the council.
The exact process for dealing with proposed changes to an agreement varies from one council to the next, so contact your local council for more information.
If you can’t agree to new terms with your council, the next course of action is to apply to VCAT (Victorian Civil and Administrative Tribunal) for an amendment. Any disputes relating to the terms and conditions of an agreement may also be referred to VCAT for assessment.
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Hello,
Can you have multiple Section 173 Agreements on a Title?
Thank you in advance.
Hi David,
Thanks for your message and for visiting finder – the leading comparison website & general information service built to give you advice in your buying decision needs. How are you doing today?
You can only have 1 Section 173 in an agreement, however, should you need than 1 restriction, it can be listed down in the title.
Hope this helps! Feel free to message us anytime should you have further questions.
Cheers,
Nikki