Definition of "Overage"

Phillipa  Criswell real estate agent
Phillipa Criswell, Real Estate Agent Decker Bullock Sotheby's International Realty

  1. Rental increment tied to sales or profit that is in addition to the flat rental fee. Assume a retail store in a mall is charged a base rental of $5,000 per month plus 2% of sales. If sales are $100,000, the overage would be $2,000 and total rental would be $7,000.
  2. Selling price received for property in excess of the expected amount.
  3. An excessive amount; surplus.

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Comments for Overage


Tarrence N Doctor Tarrence N Doctor said:

I'm trying to sign up to be an overage locator just need a little information about overages and how it works

Jun 15, 2020  15:03:28

 
Real Estate Agent

Hey, Tarrence! I assume you are talking about overage agreements. With an overage agreement the buyer is agreeing to pay extra on top of the original price if the value of the property increases over time. For example, if a seller manages to sell a field and after a while, the buyer receives permission to build houses on the field, the value of the land increases. As a result of closing on an overage agreement the seller benefits from the value increase of the land even though he is no longer an owner. There are different types of agreements and you can find out more about them from our article listings 101. Also, if you need to find more about overage agreements in your area, you can contact us or find a real estate agent near you that can help you with the necessary information.

Jun 19, 2020  09:04:20
 

 

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