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Forward Funding Agreement Template for Belgium

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Key Requirements PROMPT example:

Forward Funding Agreement

"I need a Forward Funding Agreement under Belgian law for a 鈧50M mixed-use development project in Brussels, where our investment fund will provide staged payments to the developer starting March 2025, with specific provisions for retail pre-lets and sustainability requirements."

Document background
The Forward Funding Agreement is a sophisticated legal instrument used in Belgian property development when a funder agrees to finance a development project from its inception. This document is particularly relevant for large-scale commercial, residential, or mixed-use developments where the developer requires funding before and during the construction phase. The agreement comprehensively addresses Belgian legal requirements for property development, construction, and financial services, including specific provisions for planning permissions, environmental compliance, and tax considerations. It establishes the framework for staged payments, development obligations, quality standards, and risk allocation between parties. The document is crucial for projects where the funder takes a more active role in the development process, requiring detailed provisions for project monitoring, cost control, and potential step-in rights.
Suggested Sections

1. Parties: Identification of the Funder and Developer/Seller, including full legal names and registration details

2. Background: Context of the agreement, including brief description of the development project and parties' intentions

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Project Description and Specifications: Detailed description of the development project, including location, specifications, and permitted uses

5. Conditions Precedent: Conditions that must be satisfied before the agreement becomes fully effective

6. Purchase Price and Payment Structure: Total funding amount, payment schedule, and mechanics of drawdown

7. Development Obligations: Developer's obligations regarding construction, timing, and quality standards

8. Construction Program and Monitoring: Construction timeline, milestones, and Funder's rights to monitor progress

9. Warranties and Representations: Parties' warranties regarding capacity, title, permissions, and project deliverables

10. Risk Allocation and Insurance: Distribution of risks and required insurance coverage

11. Default and Remedies: Events of default and corresponding remedies available to parties

12. Completion and Handover: Requirements for practical completion and procedures for handover

13. Boilerplate Provisions: Standard legal provisions including notices, governing law, and dispute resolution

Optional Sections

1. Environmental Provisions: Required when the development involves significant environmental considerations or risks

2. Planning Obligations: Needed when specific planning requirements or agreements with authorities exist

3. Pre-lets and Occupier Provisions: Include when there are pre-existing lease arrangements or specific occupier requirements

4. Public Infrastructure Requirements: Required when development includes or depends on public infrastructure works

5. Cost Overrun Provisions: Include when specific mechanisms for handling cost overruns are agreed

6. Step-in Rights: Include when Funder requires right to take over development in specific circumstances

7. VAT and Tax Structure: Required when specific tax structuring is part of the agreement

Suggested Schedules

1. Property Description and Title Documents: Detailed property information and title documentation

2. Development Specifications: Detailed technical specifications and drawings

3. Construction Program: Detailed construction timeline and milestones

4. Form of Drawdown Notice: Template for requesting funding drawdowns

5. Professional Team Appointments: Details of key consultants and contractors

6. Forms of Collateral Warranties: Template warranties from contractors and consultants

7. Planning Permissions and Conditions: Copies of relevant planning permissions

8. Cost Plan and Budget: Detailed project costs and budget breakdown

9. Form of Practical Completion Certificate: Template for completion certification

10. Insurance Requirements: Detailed insurance specifications and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions










































































Clauses






































Relevant Industries

Real Estate

Construction

Banking and Finance

Commercial Property

Retail Development

Industrial Development

Residential Development

Infrastructure

Healthcare Facilities

Education Facilities

Logistics

Mixed-use Development

Relevant Teams

Legal

Finance

Real Estate

Development

Construction

Risk Management

Commercial

Investment

Corporate Finance

Project Management

Asset Management

Compliance

Relevant Roles

Development Director

Chief Financial Officer

Real Estate Manager

Investment Manager

Construction Manager

Project Manager

Legal Counsel

Risk Manager

Commercial Director

Finance Director

Property Director

Development Manager

Fund Manager

Asset Manager

Transaction Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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