What is an occupancy condition or section 47 agreement?

How it works in Ireland

A council that grants a rural house on the basis of local need can attach an occupancy condition to the permission. It says the house must be occupied as the permanent home of the applicant, or a person who meets the same test, for a set period. Section 39(2) of the Planning and Development Act 2000 allows a condition that limits use of a dwelling to a class of person, and the national model wording is 7 years.

To make the condition bind the land and not just you, the council usually requires an agreement under section 47 of the same Act. You sign it before you start building. It is registered against the property, so it can apply to people who later buy or inherit the house during the period. National guidelines limit these conditions to particular situations, such as areas near cities and larger towns under considerable development pressure.

In practice the condition affects three things. Selling or letting within the period can breach it unless the council consents. A lender will want to know about it, because a restriction on who can buy affects the security for the loan. And some conditions require you to send the council a statement of occupation within a stated time after you move in, so diary that date.

If your life changes in the period, such as a job move or illness, ask the council for consent in writing before you sell or let. Do not rely on a phone call.

A common mistake

Reading the condition only when you want to sell. Ask your solicitor to review the exact wording and the draft agreement before you sign, and to check how it sits with your lender’s requirements. A breach can lead to enforcement action by the council.