Understanding Agreements on Title in Victoria

(Including Section 173 Agreements and Environmental Notifications)

Not all restrictions on a property come from zoning or covenants — some arise from agreements entered into with a Council or other government body, and they are binding on all future owners.

As explained by David Dawn, Licensed Conveyancer at Victorian Property Settlements, these agreements are often missed in pre-purchase checks, but they can directly impact how the land can be used or developed. They’re legally enforceable and should never be ignored.

What is an Agreement on Title?

In Victoria, certain registered agreements are noted on the title as an “instrument” or “notification.” The most common are:

  • Section 173 Agreements, made under the Planning and Environment Act 1987 (Vic)

  • Environmental notifications, especially under the Environment Protection Act 2017 (Vic)

These agreements are legally binding. They run with the land, which means they apply to you as the new owner, even if you didn’t enter into the agreement yourself.

Common types of Agreements you’ll see on title

1. Section 173 Agreement

This is an agreement between a landowner and the local Council. It usually arises from a planning permit condition and might require the owner to:

  • Maintain native vegetation or landscaping

  • Prohibit further subdivision

  • Restrict use of the land (e.g. rural use only)

  • Limit future buildings to specific envelopes or setbacks

  • Provide access to public infrastructure or drainage

  • Pay contributions towards future infrastructure

The agreement is negotiated before or during a planning permit process, but once registered on title, it binds all future owners.

2. EPA Environmental Notification

This may be placed on the title when the Environment Protection Authority has concerns about contamination or previous land use. It could include:

  • Former industrial land (e.g. service stations, dry cleaners, tip sites)

  • Land suspected to contain asbestos, hydrocarbons, or buried waste

  • Requirements for ongoing monitoring or site management

It alerts future owners and the general public that the land may be environmentally compromised, and in some cases, subject to further investigation or remediation orders.

Where do you find these Agreements?

  • On the title search, listed as a “Registered Instrument” (often with a reference like "AG123456X")

  • Attached as a PDF instrument, which your conveyancer can order from Land Use Victoria

  • Disclosed in the Section 32, Vendor Statement, under "Encumbrances or Restrictions"

  • Referenced in planning permits or subdivision approvals

You will not usually receive the full terms unless they are specifically requested or included in the sale documents.

Idiosyncrasies of Registered Agreements

  • They don’t expire unless removed by agreement or by amendment through a formal process

  • You can’t contract out of them — they bind successors in title

  • Removing or amending a Section 173 Agreement requires Council consent and a formal application

  • Environmental notifications may affect finance or insurance if the land is seen as high-risk

  • Many buyers are unaware they’ve bought a property with restrictions until it’s too late

How do Agreements differ from other title conditions?

  • Unlike Easements, they don’t give another person access — they limit your own rights

  • Unlike Covenants, they are made by agreement, not imposed unilaterally by a prior owner

  • Unlike Caveats, they are not just warnings — they are binding contracts

  • Unlike Zoning, they don’t apply across the board — they are property-specific

Benefits of Agreements

✅ Can enable flexible development where strict zoning would not allow it

✅ Provide certainty in complex subdivisions or staged developments

✅ Allow Councils to manage land in sensitive areas (e.g. bushfire zones, green wedges)

✅ May protect environmental values or open space while still allowing private ownership

Drawbacks and risks

🚩 May restrict what you can build, plant, subdivide, or construct

🚩 May prevent further development even if the zoning would otherwise allow it

🚩 Often overlooked in conveyancing if the instrument isn’t downloaded and read carefully

🚩 Costly and time-consuming to amend or remove

🚩 Can affect resale value or buyer interest if the obligations are onerous

Key Takeaway

Registered agreements on title are enforceable — and they survive the sale of land. You need to know what they say, what they require of you, and whether your future plans will be affected.

📞 Need help reviewing a Section 173 or environmental agreement?

We’ll locate, review, and explain the instrument before you sign. If needed, we can advise you on your options or help you speak with the Council about amending or removing the agreement.