Section 173 Agreement

A Section 173 Agreement provides for ongoing restrictions or requirements on land.

It is typically required when local residents wish to sell a portion of their land to fund an approved development project. The agreement primarily is used for 2-lot subdivisions, and governs the detail in creating a separate title for the newly created lot before development is completed.

If a property already has a Section 173 Agreement registered on it that needs to end or be amended, contact us to discuss the available options.

For larger developers, the agreement can also be used to:

  • ensure that the development of land is done in accordance with a planning permit
  • protect native vegetation and secure vegetation offsets
  • protect building exclusion zones
  • enforce private waste collection agreements.

Entering into a Section 173 Agreement

Step 1.Discussion

We encourage you to discuss the nature of your project with your planner and our Development Planning team before your land surveyor lodges your plan for subdivision.

Your surveyor may also discuss obtaining a Section 173 Agreement with you during the subdivision process.

If you have already obtained a permit and have been made aware that this agreement is required, we can still negotiate one with you.

Call us on 9490 4222

Step 2.Conditions and responsibilities

We commonly require this agreement as a condition of your subdivision permit if you are seeking a separate title before your approved development is complete.

You still have current site preparation responsibilities for future works, which an agreement does not defer:

  • connecting power, water, sewer and telecommunications to the new lot
  • installation of drainage that reflects the endorsed plans
  • creation of public works, including footpaths, kerbs and crossovers.

Step 3.Preparing the agreement

We can prepare the agreement on your behalf.

If you prepare the agreement privately, our solicitors must review it to ensure that our interests have been protected. This would be done at the application stage.

You will be responsible for any legal fees associated with the agreement's review.

Step 4.Application

You need to contact us to request an application form and to confirm what fees will apply to the preparation of your agreement.

Apply for a Section 173 agreement

Step 5.Consideration and fees

We will consider your application. If accepted, we will advise you of the associated fees and legal costs to progress the application.

In general, the average amount of time required to assess and complete the process is 3 months.

Step 6.Registration

An agreement must be registered on the land title to to which it applies.

This ensures that all future land owners are aware of and bound by the requirements of the agreement.

We will arrange for registration when we are satisfied that the agreement protects our interests.

Reference material

If you're considering a development project, refer to the Banyule Planning Scheme and our Development Contributions Plan(PDF, 2MB) as some exemptions do apply.

The Victoria Government Department of Environment, Land, Water and Planning has extensive resources on plans and subdivision.

Contact

If you have any questions, contact the Development Planning team on 9490 4222 or at Subdivisions@banyule.vic.gov.au

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