Legal
Overage Clause
Definition
A clause in the sale contract that entitles the previous owner to a share of any increase in the property's value if it is developed or has planning permission granted within a specified period (typically 15–25 years). Common when buying land or properties with development potential.
Why it matters
An overage clause can significantly reduce the financial benefit of developing a property. If you're buying a property with garden land, a paddock, or development potential, check the title carefully for overage. It's often missed until you try to build.
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