The Highway Authority (Council) does not have the power to insist that a developer enter into an S38 agreement. However, many developers consider this also the best option, as the adoption process can be long, and if it takes place at the end of a route, the developer is responsible for all maintenance work until the adoption takes place. Sometimes there may be delays in the completion of the road assuming that this could be the developer of the construction of the road before the entry into force of Section 38 of the agreement, trying to change the standard conditions of Section 38 of the county council agreement, the road is built slowly or is unfinished, the road is not built according to the standards of the county council , there may be problems with the adoption of pipes under the new road, the road may be ready, but there may be open construction defects that the developer must correct. This can include things like faulty streetlights, potholes, overgrown edges, broken discharge blankets. Paragraph 38, paragraph 6, provides that an agreement under section 38, paragraph 1, or section 38, paragraph 3, may contain provisions relating to the dedication, construction costs, maintenance or improvement of the motorway concerned, as well as other relevant issues other than the authority that considers the agreement to be appropriate. Once an agreement has been reached in accordance with Section 38, the developer must work under a number of conditions, conditions and deadlines. It is supported by a loan or cash deposit, calculated by the motorway authority, on the basis of the proposed work. This loan or cash deposit can be used if the developer goes into liquidation or if he otherwise complies with his obligations. A Section 38 (or S38) agreement is a section of the 1980 Highway that can be used when a developer proposes the construction of a new road for residential, industrial or general transportation, which can be proposed to the road authority for adoption as a public highway. Buyers are therefore in a difficult situation. There is no real legal obligation for someone to place the roads at an acceptable standard if the agreement is not in force and if, ultimately, the motorway authority could go back to the person who owns the land at this stage to contribute to the considerable costs. If you are buying real estate with the help of a mortgage, this situation should be reported to your mortgage lender, who cannot continue.
Even if you don`t need a mortgage for your purchase, you need to consider the impact when you come to sell the property. Paragraph 38, paragraph 1, provides that the appropriate minister or the road transport authority, when a person is responsible for the maintenance of a motorway under an order or a term, confinement or regulation, may agree with that person to take over the maintenance of that highway, so that the highway on which the agreement relates can be provided on the date set out in the agreement. , a highway that can be guaranteed at public expense and that erases that person`s responsibility for maintaining the highway. If the developer does not move the work satisfactorily in accordance with the agreement, the motorway authority will always try to resolve the problem first through negotiation. If this is not the case, road authorities will have the option of requesting the loan to pay for the completion of the motorway works.