Overage

A seller may wish to sell land and, at the same time, reserve the right to receive a further payment if certain events occur. That further payment is known as an “Overage.” Other Commercial Property areas we cover include:

Top 10

Ranked top 10 out of 11638 solicitor firms in the UK.

RATED AS EXCELLENT

see our rating

Fill in the contact form and we will get back to you shortly.

Get on contact and we will arrange a no-obligation callback at a time to suit you.

1

Full Name*

Email*

2

Tel No *

Select your nearest Tinsdills Branch *

How did you hear about us? *

3

Your Enquiry

I consent to Tinsdills contacting me via:

Post

SMS

Telephone

Choose Tinsdills For Trusted Overage Assistance

An example of where an Overage might be used is as follows:

A buyer (B) wishes to purchase land from a seller (S). B has indicated that he intends to build and sell 20 houses on the land. Based on those intentions, S and B agree on a sale price of £1m. S is concerned that B might build and sell more than 20 houses on the land, so S may not have received full market value for his land.

In the above scenario, S and B could agree to enter into an Overage deed, which provides that should B build more than 20 houses, he will make a further payment(s) to S.

The terms of an Overage deed can vary significantly. Understanding what entitles the seller to a further payment is a fundamental part of the Overage deed.

Whether you are buying or selling, you must understand the terms of the Overage deed. Issues can arise if the terms are unclear or have been drafted too narrowly/widely.