Overage
/ˈoʊvərɪdʒ/
Definitions
- (n.) An amount in excess of a stipulated quantity, especially in contracts or leases.
The tenant must pay rent on the overage if the property generates higher revenue than expected.
- (n.) In commercial real estate, additional payment owed based on higher sales beyond an agreed threshold.
The landlord received an overage payment after the store's sales surpassed the target.
Related terms
Commentary
Often used in lease agreements to capture additional payments tied to revenue or usage exceeding initial estimates.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.