Document background
The Deed of Overage is commonly used in Australian property transactions where there is potential for significant value increase through development or planning changes. This document becomes relevant when a property owner wants to sell land while retaining the right to benefit from future value enhancement through development or planning permission. The deed establishes trigger events (such as obtaining planning permission or completing development), calculation methods for additional payments, and security mechanisms to ensure payment. It requires careful consideration of Australian property law, planning regulations, and tax implications. The Deed of Overage typically includes detailed provisions for registration against the property title, ensuring the obligations bind successive owners.
