The Harris v. Berkeley Strategic Land Limited  EWHC 3355 case is a perfect example of a lack of sufficient detail in the development of an overrun agreement. In this case, overtaking would be caused by the development of “residential housing” (among other types of development) on land sold to the developer. The question of whether 60 units in the development of nursing homes were “housing” under the definition of the over-operation agreement has been controversial. The developer who defended the claim argued that the 60 units were “Class C2 units” – so it is not an evolution that would trigger the obligation to pay the overrun. The Tribunal found that, although there was a planning distinction between C2 and C3, the development was one that included housing units and was therefore covered by the overrun agreement. The overrun agreement did not stipulate that a construction should be C3 (i.e., what could generally be considered residential construction and not a development of care homes), but more generally related to residences. This case is a perfect warning as to why it is not enough to simply say “residential construction” as a trigger, and we need to think more about what is actually planned. It is also important that, if necessary, the overrun is not personal for the first buyer, but that he also hires his successor.
Many age provisions have failed because the related party transfers its shares to an unrelated party. How much do I have to pay? A salesman has to be careful. The essence of outperformance is to share the hope value of a piece of land. The share sought by a seller should not be such that it prevents the buyer from developing during the overrun period. Is the payment a fixed amount, a percentage of the improved value of the site or a percentage of the amount in excess of a sale price exceed a specified price? What is the formula for calculating payment? How do I calculate the underlying, market value and value added? How will overtaking be protected? There are different structures with meadows and posts. Size is not suitable for everyone, but protection methods include a legal fee, a payment agreement and title restriction, a restrictive confederation or a bank obligation and a bond. The percentage of sellers is only the starting point for negotiations; There are many other aging variables that need to be decided. Our advice is to make sure they are all agreed before ordering your lawyer to continue the sale or purchase. In other words, obesity means safeguarding rights on any future value increase and is commonly referred to as anti-embarrassing provision. In most cases, the provisions allow a seller to participate in the increase in land values resulting from circumstances such as obtaining a building permit or using the land and land for use other than that used at the time of the initial sale.
Exceeding clauses generally do not apply only to rising house prices, due to typical and expected market forces. An overshoot should be clear on the obligations of the parties. For example, in this area of the agreement, it is essential that the wording be clear, otherwise problems and gaps might arise. We recommend obtaining legal advice when defining the terms of the agreement in order to avoid this situation. 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. A trigger may be the granting of planning permission or when a new development or use is implemented or completed.