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Deed Of Overage Template for Switzerland

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Key Requirements PROMPT example:

Deed Of Overage

"I need a Deed of Overage for the sale of a 5,000 square meter commercial plot in Zurich, with overage payments triggered if planning permission is obtained before March 2025 for office development exceeding 15,000 square meters of floor space."

Document background
The Deed of Overage is utilized in Swiss property transactions where a landowner wishes to retain an interest in the future development value of their property after sale. This document becomes particularly relevant in scenarios where land has development potential but the current market value doesn't reflect this future possibility. The deed establishes the mechanism for calculating and paying additional consideration (overage) when specific trigger events occur, such as obtaining planning permission or completing development. Under Swiss law, these agreements must be carefully structured to comply with cantonal property regulations and federal laws, including the Swiss Civil Code (ZGB) and Code of Obligations (OR). The document typically includes detailed provisions for calculation methods, payment terms, duration of the overage period, and security arrangements, all while ensuring compliance with Swiss notarial requirements and property registration regulations.
Suggested Sections

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

2. Background: Context of the transaction, description of the property, and purpose of the overage arrangement

3. Definitions: Defined terms used throughout the deed, including specific Swiss legal terminology where relevant

4. Property Description: Detailed legal description of the property including land registry details and reference numbers

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

6. Trigger Events: Specific events or circumstances that will trigger overage payments

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

8. Payment Terms: Timing, method, and currency of overage payments

9. Security Provisions: Methods of securing the overage obligations, such as charges or guarantees

10. Representations and Warranties: Standard statements of fact and promises by the parties

11. Covenants: Ongoing obligations of the parties during the overage period

12. Assignment and Transfer: Rules regarding transfer of rights and obligations under the deed

13. Notices: Process for formal communications between parties

14. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction

15. Execution: Formal execution blocks complying with Swiss notarial requirements

Optional Sections

1. Planning Obligations: Include when overage is linked to specific planning permissions or development rights

2. Tax Provisions: Include when specific tax treatment needs to be addressed, particularly for international parties

3. Step-in Rights: Include when lender's rights need to be protected

4. Dispute Resolution: Include when parties wish to specify arbitration or mediation procedures

5. Force Majeure: Include when parties want to address extraordinary circumstances affecting development potential

6. Currency Provisions: Include for international transactions where currency fluctuations may be relevant

7. Environmental Provisions: Include when environmental factors may affect development potential

Suggested Schedules

1. Property Plan: Detailed plans and drawings of the property

2. Calculation Examples: Worked examples of overage calculations in different scenarios

3. Form of Notice: Template for triggering overage payment notices

4. Development Scenarios: Description of potential development scenarios affecting overage

5. Land Registry Details: Complete land registry information and documents

6. Planning Permissions: Copies of existing planning permissions or development rights

7. Payment Mechanics: Detailed procedures for calculating and processing payments

8. Security Documentation: Forms of security and related legal documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


















































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Relevant Industries

Real Estate

Construction

Property Development

Urban Planning

Infrastructure Development

Commercial Property

Residential Development

Land Investment

Banking and Finance

Relevant Teams

Legal

Real Estate

Property Development

Planning

Finance

Investment

Construction

Corporate

Commercial

Compliance

Relevant Roles

Real Estate Director

Property Development Manager

Legal Counsel

Land Acquisition Manager

Planning Director

Investment Manager

Development Director

Project Manager

Real Estate Partner

Commercial Director

Finance Director

Construction Manager

Notary Public

Property Lawyer

Land Registry Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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