Section 173 agreements

A section 173 agreement is a legal agreement made between our organisation 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.

Purpose of a section 173 agreement

An agreement generally provides for someone to carry out, or not carry out, matters specified in the agreement and should be used where a condition on a permit or Planning Scheme controls will not provide for the requirement to be fulfilled.

An agreement may provide for:

  • The prohibition, restriction or regulation of the use or development of the land

  • The conditions subject to which the land may be used or developed for specified purposes

  • Any matter intended to achieve or advance the objectives of planning in Victoria or the objectives of the Planning Scheme or an amendment to the Planning Scheme, for which notice has been given

A section 173 agreement may be used, for example to:

  • establish an agreement for monetary contributions for road construction

  • prevent the further subdivision of land

  • provide for the provision of infrastructure

  • protect stands of native vegetation

  • provide for maintenance of a facility

Preparing a section 173 agreement

Section 173 agreements are usually prepared by a solicitor.

The cost of preparing the section 173 agreement is usually covered by the applicant.

Review of section 173 agreement

Once a draft agreement is submitted to Council for comment, we will have it peer reviewed by an independant lawyer at the owner's expense.

Registration of a section 173 agreement

A section 173 agreement is registered on the title to the land. This ensures that all future owners are aware of the requirements and are bound by them.

An application to register the agreement must be made to the Title Office, and should be accompanied by two copies of the signed agreement.

Agreement time period

A section 173 agreement can end after a specified event or time period outlined in the agreement.

A request to Council must be made to end an agreement.

Page last updated: Monday, 10 October 2016