Course description
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.
Presented by the highly experienced and popular speaker Peta Dollar, this virtual classroom seminar will cover everything that you need to know so as to get the best possible outcome for your client. Find out about the essential elements of an overage clause, creating formulae for the calculation of overage, tax issues, traps and lessons from recent cases.
Upcoming start dates
Outcome / Qualification etc.
Training Course Content
Introduction
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
Expenses
MBL Seminars Limited
MBL is a leading learning and development provider for professional service firms. Over the past 18 years, more than 198,000 people across 23,000 different organisations spanning 81 countries, have chosen us to deliver their training. With over 800 expert speakers...