Overage is one of the more complex areas of real estate transactions. What may seem a simple concept at the outset will often develop a life of its own.
You therefore need lawyers who deal regularly with overage and understand thoroughly the issues it raises and make sure that the overage does not over-complicate the sale. Here at Land Law we have lawyers who have all the necessary skills. We try to be involved at heads of terms stage to discuss with our clients and their agents how the overage formula can work best and how it can be secured. This helps to facilitate a meeting of minds at the outset between the parties, and saves misunderstandings later.
Overage can come in many guises, ranging from planning triggers, to sales and other thresholds. Sometimes these are combined together. Sometimes they cover transfers of underlying ownership. We strive to make our documents clear and unambiguous. There are many traps in overage, and we help our clients avoid these. One of our lawyers has drafted standard overage documents for a major government department and has completed a complex overage arrangement for a well-known manufacturer involving a site with an hotel, commercial units and 500 houses.