Say you lived in an affordable home which you own 100% of freehold but it was sold to you at 20% less than market value because you are a local person, where would you find out your ongoing obligations to this deal ie for how many years/owners will this restriction apply?

Would it be in your title deeds?

Section 106 restrictions will be included in the original planning application which you’ll find online.

Preventing subsequent owners selling at market value doesn’t sound like a section 106 thing, though, maybe you’d need to look elsewhere for that.

At a guess there would be a restrictive covenant in the deeds which only allows it to be sold to ‘local’ people etc. Quite common with retirement homes etc where the purchaser has to be over 55 etc.

How is a local person defined?

You aren’t party to the Section 106 Agreement (which would have been between your local authority and the developer who built your house).

Any obligations for you as a result of this will have to be in your deeds in order for it to apply to you. Otherwise there is no contract.

Wallop – probably depends whether the s106 obligations are transferred with Title. As per OutOfBreath, read the s106 on line via authority planning portal and read yer deed.

So the 106 agreement between the developer and councils states only the % of houses which must be on various schemes.

My deeds only state one restriction which is that new owner must continue paying grounds maintenance company.

Solicitors say:
>I copy an extract from our property report dated 29 October 2015:</p>

Affordable Housing
The Property that you are purchasing is an Intermediate Affordable Property in accordance with the Section 106 Agreement dated 28 June 2012, a copy of which is enclosed, and there is a restriction in the Transfer to you stating that you will not dispose of the Property otherwise than in accordance with the provisions of the same. The Property you are purchasing is one of three being sold at a discount of 20% off the open market value.</p>

T<em style=”font-size: 0.8rem;”>he purpose of the Section 106, amongst other things, is to ensure that some properties in the community cannot be bought by developers, landlords or second home owners, and will be available to people who wish to live and work in the area, and who may otherwise be priced out of the property market.<span style=”font-size: 0.8rem;”></p></span>

If you wish to sell the Property, before it can be placed on the open market Assumption Lamd District Council (or the Affordable Housing Provided nominated by the Local Authority) must first be given the opportunity to nominate a suitable person to purchase the Property from you. This person must meet the criteria which the Council has in place at the time that you wish to sell.</p>

If the Council is not able to find anyone suitable who meets the criteria within the time limit that applies, then you would be permitted to sell the Property on the open market, but the buyer must be able to show that they have a local connection. Any sale on the open market would be similarly capped to 80% of the open market value i.e. you will be passing the 20% discount onto the next buyer.</p>

In order to show a local connection, the buyer would need to demonstrate any of the following criteria:</p

That they have been resident within the parish of Assumptions, immediately prior to completion taking place;

That they have a strong local connection to the parish of Assumption Land;

That they have family associations in the parish of Assumption Land;

That they have to have permanent employment in the parish of Assumption Land

The future value of the Property will be based on what it is worth, taking account of the restriction on the Property which limits the pool of potential buyers, as it cannot be purchased by someone without any links to the area. This may therefore mean that the value of the Property will be lower than the value of an equivalent property which is not affected by the restriction.</p>

-What is a property report?

-Does the restriction have to be stated in MY deeds to actually apply?

Cheers, far too complicated for my brain

At a cursory reading it seems to be pretty clear that you are under a restriction as to whom you can sell your property to, and that it is limited to those 4 listed criteria and at 80% of market rate. I would take further advice.

there is a restriction in the Transfer to you stating that you will not dispose of the Property otherwise than in accordance with the provisions of the same

This would suggest that the same restriction applies to you on sale.

I think there should be a Transfer Deed, as well as the Title Deed. The Title Deed proves that you own it. The Transfer Deed should contain the terms on which you bought the house (of which the text you’ve quoted is a summary). I hope it will also define how the market value is calculated, since if the Council nominate a buyer, the price is fixed at 80% of that.

-Does the restriction have to be stated in MY deeds to actually apply?

There would normally be a restrictive covenant inserted into your deeds.

Out of interest, who can enforce the covenant? Normally it’s the original landowner I think – my house from 1936 has a couple, but they’re completely unenforceable as the landowner is dead / company defunct.

I can’t see the developer giving a **** who you sell your house to in 15 years time, could the council enforce it?