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Ban the use of 'claw-back' or 'overage' clauses in property sales

Submitted by Jeremy Edward McCluskey on Monday 15th April 2024

Published on Tuesday 23rd April 2024

Current status: Closed

Closed: Wednesday 29th May 2024

Signatures: 33

Relevant Departments

Petition Action

Ban the use of 'claw-back' or 'overage' clauses in property sales

Petition Details

An overage clause (also called uplift clause or, more appropriately in our view, claw-back clause) on a property for sale, means in essence that if there is future development, then a buyer must pay a percentage on any increase in value to the previous seller.

Additional Information

Some overage clauses can cover 25-50% of the increased value, and be in place for 25yrs, or longer.

We don’t believe there is an equivalent in other contexts, where it is contractually legal for a previous owner to demand a share of future values in something they no longer own!

As a parallel – if one were to buy a regular van and convert it to a luxury camper – would the original owner ask for a share in the uplift in value of the transformed vehicle?


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3.133.133.39 Thu, 21 Nov 2024 13:36:07 +0000