- Update/Intermediate *3 hours CPD
Overage has been described as the next great growth area for those involved in professional negligence claims. Frequently, a significant land deal is expected to include overage, but the terms seem to differ in each transaction. Large sums of money are at stake, but there is little assistance from the precedent books, and no standardisation in drafting. If clients' expectations are not met, it is usually the lawyers who get the blame. This course seeks to assist the property lawyer by exploring a wide range of common issues, and by analysing some drafted documents. Issues include:
- What do we mean by overage?
- An analysis of the pros and cons of the methods used for securing future payments out of property, including contractual obligations; restrictive and positive covenants; restrictions on the register; charges, liens and options; long leases
- Drafting points - what is the overage trigger, and how should it be defined? Avoiding circumvention; quantifying overage; valuation points; payment and release
- SDLT implications - deferring payment of tax
- Professional negligence implications - what lessons can be learned from reported cases?
- A practical analysis of the drafting of some real-life overage provisions