Overage agreement: buyer side; concessionary
- Solicitor approved
- Plain English makes editing easy
- Guidance notes included
- Money back guarantee
About this overage agreement
This document is for a property buyer. As every property professional knows, an overage agreement is a useful device for a seller to obtain the maximum value from the sale of his land. However, it is more likely than not that it is the buyer who initiates the deal. It is therefore strongly in the interest of the buyer to produce the contract in a version he can live with. The parties can then negotiate the finer points based on that contract.
This agreement could be used for any land deal, regardless of value. Use by incorporating in the contract for sale or as a stand-alone agreement.
This agreement provides for payments on repeated sales over however many years you wish. However, the buyer should avoid being drawn in to a long overage period, because a future owner of a developed part, such as a house of workshop owner, may have difficulty in finding a lender on “overaged” property.
The aim of this agreement is to provide a framework which entices future owners to develop and not one which ensures that they do not develop.
Advantages of this agreement
The advantages of this overage agreement are with the buyer. In particular:
- Interest is not payable from the moment planning permission is granted.
- Overage does not bite on the value of buildings but only on an increase in the land value.
- there is no obligation for the buyer to try to register the agreement at the Land Title Office. (That is likely to be impossible, but is nevertheless demanded by some lawyer).
- in calculating overage, credit is given for money expended in obtaining the permission, such as professional and planning fees.
When to use this buyer’s overage agreement
Use this agreement when you buy any land. The land does not have to be open land. It is just as binding when the land is an old industrial shed or a perfectly good office building which stands in the way of larger development.
The benefit of an overage agreement is that the buyer is not at risk of buying at a price which does not reflect current value, while the seller can look for a future share of future value without the expense and work involved in achieving that future value.
This document is in plain English. Nonetheless it is a sophisticated document drawn by a property specialist solicitor. It is suitable whether you are an individual or work through a company incorporated in Canada.
Contents of this overage agreement
- Overage Payment: payment terms
- The Overage Payment: Surveyor’s valuation
- Transferees’ continuing liability
- Release to enable Transfer
- Seller’s costs
- Miscellaneous matters
This document was written by a solicitor for Net Lawman. It complies with current Canadian law.
"I needed an Agreement and Google, as always, was where I headed. I found the Net Lawman site and initially I thought I needed a relationship type Agreement but the Lodger one was absolutely perfect.
I didn't think it would be so easy so would recommend your website to anybody who was looking for an Agreement to suit their needs."Wendy Auger
"Net Lawman has helped me through several procedures. The documents in plain English, the drafting service and the delightful customer service means I can get the job done properly, at a price that doesn't affect a small businesses bottom line. Thank you!"Dan White
"I needed to start a company fast, I searched and after looking at a few websites I came across netlawman, by far the easiest around. I will be looking again for when I need future documents fast. Thank you."textcards