Positive overage covenant with restriction: overage payable on earlier of implementation of planning permission and disposal of property with benefit of planning permission | Practical Law

Positive overage covenant with restriction: overage payable on earlier of implementation of planning permission and disposal of property with benefit of planning permission | Practical Law

A standard document for use where, during an agreed overage period, for each planning permission granted for a particular type of development, a buyer is to make an overage payment to a seller on the earlier of implementation of that planning permission or the disposal of the property with the benefit of that planning permission.

Positive overage covenant with restriction: overage payable on earlier of implementation of planning permission and disposal of property with benefit of planning permission

by Practical Law Property
Maintained • , England, Wales
A standard document for use where, during an agreed overage period, for each planning permission granted for a particular type of development, a buyer is to make an overage payment to a seller on the earlier of implementation of that planning permission or the disposal of the property with the benefit of that planning permission.
Provision is made for a restriction to be entered against the buyer's title and for the creation of a chain of deeds of covenant with the buyer's successors in title.
The document is drafted as a standalone overage deed to be entered into on completion of a sale of a property. The operative provisions may also be adapted for use in a schedule to a transfer or a contract for sale.
Note: Overage provisions must always be drafted and adapted to fit the particular circumstances and terms of the transaction. The standard document should be amended and modified accordingly. This standard document and its integrated drafting notes highlight issues that commonly arise and should be taken into consideration. However, it is likely that there will also be other factors arising out of the particular transaction that must be taken into account.