What is a section 173 agreement?

The responsible authority can negotiate an agreement with an owner of land to set out conditions or restrictions on the use or development of the land, or to achieve other planning objectives in relation to the land. (For VicSmart applications, the responsible authority will be your local council.)

These agreements are commonly known as section 173 agreements. The power to enter into the agreement arises under section 173 of the Planning and Environment Act 1987 (the Act).

Like other agreements, a section 173 agreement is a legal contract. However, the benefit of a section 173 agreement is that it can be recorded on the title to the land so that the owner’s obligations under the agreement bind future owners and occupiers of the land. A section 173 agreement can also be enforced in the same way as a permit condition or planning scheme.

The purpose of an agreement is to make it easier to achieve planning objectives for an area or particular parcel of land than is possible when relying on other statutory mechanisms.

For more information on Section 173 Agreements take a look at Chapter 8 of the government guide “Using Victoria’s Planning System”.

 Source: Using Victoria’s Planning System by the State of Victoria