Overage agreement: buyer version; simple
This is a complete and practical overage agreement for a property buyer to put to a seller as an incentive for the seller to sell his land.
The agreement can be as soft as the buyer wishes. The document is drawn as a simple version so that the buyer can minimise his future obligations.
This is a comparatively simple version in which the seller’s rights do not pass from the present buyer to a future buyer. The effect is that the present buyer is bound for the overage period, but can sell a title “clean” of the attached overage.
The calculation of the overage payable is simple, in that it bites only when a planning consent increases the land value by a given sum. It thus avoids the possibility of multiple small overage charges.
The aim of this agreement is to provide a framework which entices the buyer to develop and not one which ensures that he does not develop.Read More