As any real estate professional knows, an overtaking agreement is a useful way to get the maximum value of the sale of land. The buyer can buy at low risk cost and the seller will eventually share the future development value in agreed proportions. Therefore, a buyer should require the buyer to be informed of any changes to the persons benefiting from the overrun, but even if this is not the case, practical problems often arise. Bidwell`s real estate specialists can help with strategic land promotion and sale. This includes helping suppliers obtain premium value with extensive over-performance provisions and ensuring that contractual obligations and over-performance payments are met. Almost all of today`s agreements could include an element of overtaking. However, for an overrun payment to be made, a trigger event must first occur. For the sale of land or land, an over-age or “exceeding” agreement is used, which is expected to appreciate significantly in the near future; a perfect example when land is sold to real estate developers. Where over-execution conditions have been included in the contracts during a sale, the seller may have the right to receive a share of the profits if the conditions are met. If.
B for example, the developer who buys the land immediately applies for a building permit, the overrun clause extends over a relatively short period of time (probably no more than five years). However, some types of land may take much longer to be available for development. Learn more in these Bidwell case studies on the sale of first-class housing and land in the UK. If you are a landowner hoping to sell part of your portfolio at the best price, contact Bidwells to discuss overruns and other important issues in your sale. Also known as withdrawal or buoyancy, an overrun is an agreement that the buyer must pay in addition to the initial purchase price if certain events occur. For example, if the buyer increases the value of the land by obtaining a building permit. In these circumstances, and indeed for all aspects of overspending, it is important that both parties be clear about the terms of the agreement in order to avoid complications and delays in exchange.