Deed Of Overage Template for Germany

A Deed of Overage is utilized in German property transactions where there is potential for future value enhancement of the property. This document type is particularly relevant when selling land that may have development potential but where the final value is uncertain at the time of sale. The deed ensures the original seller can benefit from future value increases while allowing the sale to proceed at current market value. Under German law, the Deed of Overage must be notarized and registered in the Grundbuch (Land Register) to be enforceable against subsequent owners. The document typically includes detailed provisions about trigger events (such as planning permission or development completion), calculation methods for additional payments, timeframes, and security mechanisms. It's especially common in development land sales, urban regeneration projects, and agricultural land with potential for rezoning.

1. Parties: Identification of all parties to the deed, including full legal names, addresses, and registration details for companies

2. Background (Präambel): Context of the transaction, including details of the original property sale and reason for overage provisions

3. Definitions: Key terms used throughout the deed, including 'Property', 'Trigger Event', 'Overage Period', and calculation terminology

4. Property Description: Detailed description of the property including land registry details (Grundbuch) and cadastral information

5. Overage Obligations: Core provisions detailing the circumstances triggering additional payments and calculation methods

6. Payment Terms: Specifics of how and when overage payments must be made, including payment mechanics and timing

7. Duration: Period during which the overage provisions remain effective

8. Security Provisions: Methods of securing the overage obligation, including land charge (Grundschuld) if applicable

9. Land Register Requirements: Provisions for registration of the overage rights in the Grundbuch

10. Notices: Requirements for notification of trigger events and formal communication between parties

11. Successors in Title: Provisions ensuring the overage obligations bind subsequent owners