Document background
The Forward Funding Agreement is a sophisticated legal instrument used in real estate development projects where a funder agrees to finance a development project from its inception. This document is particularly crucial in the Austrian market where real estate development requires careful consideration of federal and state-level construction regulations, property laws, and financial services requirements. The agreement typically comes into play when a developer has identified a development opportunity but requires external funding to proceed with the project. It sets out the entire framework for the development funding, including conditions precedent, development obligations, payment mechanisms, and completion requirements. The Forward Funding Agreement must comply with Austrian civil law principles, particularly those found in the ABGB (Austrian Civil Code) and relevant property and construction regulations. It is commonly used for commercial property developments, including office buildings, retail developments, and industrial facilities.
