‘The case concerned a residential development is White Sands, Camber, East Sussex. The land initially belonged to Burrows, which had obtained planning permission to build out a residential housing estate. Part of the land was sold to Ward, a housebuilder, subject to the terms of a contract which included an overage agreement by which 30% of profits above a fixed ceiling were payable to Burrows. That overage agreement was protected by a restriction at the Land Registry against the Ward title. Pursuant to the contract, certain disposals were “Permitted Disposals” under Clause 4.9 of the contract, not caught by the restriction. These included sales of individual units in the open market, and also (under sub-paragraph (c)) “the transfer … of land … for roads, footpaths, public open spaces or other social/community purposes”. Save as permitted, other disposals were caught by the restriction and required the disponee to submit to a deed of overage direct to Burrows.’
Falcon Chambers, November 2017
Source: www.falcon-chambers.com
