Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Clawback definition

What does Clawback mean? Clawback describes the recovery of money already paid—such as commission, fees or bonuses—where payment was conditional and the condition later fails. It is a descriptive term used across legal contexts; in some areas (notably financial services remuneration) specific triggers and time limits are set by regulation rather than a general statutory definition. A common example is commission clawback in life and protection business. Where initial commission on a regular premium policy is paid on an indemnity basis, it is subject to an earnings period. If the customer stops paying premiums before the end of that period, the adviser must repay the...

Overage in land sales: drafting guidance on triggers (planning, development and disposals), valuation, and security mechanisms (England and Wales)

Published by a LexisNexis Property expert

Practice notes

Overage

Overage (also called ‘clawback’ or ‘deferred consideration’) allows a seller to share in any later increase in the land’s value—for example once planning permission is secured or when completed units are sold—after the initial disposal. The right to overage is purely contractual, and any clause will be read narrowly against the party relying on it, so precision is vital. First, decide if overage is the right tool: your client might be better off with a conditional sale contract rather than an outright sale with an overage mechanism. Keep proportion when bargaining; overage can prolong talks and inflate costs, and you may need to manage your client’s expectations on timetable and fees. Sellers, particularly in the public sector, commonly require overage to avoid later embarrassment if the buyer develops and/or disposes of the land at a significant profit. However, from the seller’s angle, overage creates ‘trailing wires’, meaning an ongoing connection with the property and a willingness to remain involved...

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Web page updated on 21/05/2026

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