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Overage and Clawback agreement

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Overage, clawback and sometimes uplift are all terms used essentially to describe the same which is a requirement by a seller that in certain circumstances at some later stage the buyer is to pay additional sums for the same piece of land.

Commonly overage provisions will require further payments to be made where:-

It is important that in negotiating the terms of the overage that suitable proportions are negotiated so that the buyer of the property continues to be motivated develop land otherwise the existence of the overage will simply sterilise the property.

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