Overage - A Comprehensive Guide with Peta Dollar
It is becoming more and more common nowadays for both residential and commercial property sale contracts to contain overage provisions. But drafting, reviewing and negotiating overage clauses and agreements is a very complex area which frequently leads to negligence claims.
It is all too easy to miss something that may have a catastrophic result for your client, as shown by the many recent cases, most of which arise out of drafting errors.
This virtual classroom seminar will cover everything that you need to know so as to get the best possible outcome for your client.
What You Will Learn
This live and interactive session will cover the following:
- The essentials of an overage clause
- The period during which overage is payable
- The trigger(s) for overage to become payable
- Calculating the overage payment
- Single or multiple payments?
- Securing the overage payment
- Defining the trigger event(s) - including dealing with planning, sales and commencement of development. What is ‘planning permission’? Should it be defined?
- Creating formulae for calculation of overage
- Traps including:
- What happens if the mechanism for calculating the overage fails? How can you provide for this?
- What happens if the land is developed but there is no need for planning permission?
- Defining how the land is to be valued
- What happens if the seller dies before overage is due?
- What happens if the buyer sells the land before overage is due?
- What happens if the buyer becomes insolvent? How can this best be provided for?
- Conflict between reasonable endeavours clauses and overage clauses
- Lessons from recent cases
- Tax issues
Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.