Deed Of Overage Template for Pakistan

A Deed of Overage is essential in Pakistani property transactions where there's potential for future value enhancement through development or change of use. This document type is particularly relevant in scenarios where land or property is sold but the seller wishes to retain a right to share in any future increase in value, typically triggered by planning permission or development. The Deed of Overage operates within Pakistan's legal framework, particularly under property and contract law, and must comply with local registration requirements. It includes detailed provisions for calculating additional payments, defining trigger events, and establishing payment mechanisms. The document is commonly used in both urban and rural development contexts, especially in areas with high development potential or where zoning changes are anticipated.

1. Parties: Identification of the seller (overage beneficiary) and buyer (overage payor), including full legal names and addresses

2. Background: Context of the transaction, reference to the main property sale, and purpose of the overage arrangement

3. Definitions: Key terms including 'Overage Period', 'Trigger Event', 'Enhanced Value', 'Overage Payment', and other relevant definitions

4. Interpretation: Rules for interpreting the deed, including references to legislation and calculation methods

5. Duration: Specification of the overage period and when the obligations terminate

6. Trigger Events: Detailed description of events that will trigger overage payments

7. Calculation of Overage: Formula and methodology for calculating overage payments

8. Payment Provisions: Timing, method, and process for making overage payments

9. Buyer's Covenants: Obligations of the buyer including information provision and restrictions

10. Security Provisions: Mechanisms to secure the overage payments

11. Notices: Process and requirements for serving notices under the deed

12. Assignment: Rights and restrictions regarding transfer of rights under the deed

13. Governing Law and Jurisdiction: Confirmation of Pakistani law and jurisdiction