Forward Funding Agreement for Australia

Forward Funding Agreement Template for Australia

A Forward Funding Agreement under Australian law is a sophisticated contractual arrangement where a funder agrees to finance a development project from its inception, typically acquiring the land and funding the construction costs in stages. The agreement, governed by Australian federal and state legislation, establishes the framework for the funding relationship, including payment mechanisms, development obligations, risk allocation, and project monitoring requirements. It incorporates specific provisions for compliance with Australian property law, planning regulations, and financial services requirements, while addressing the unique aspects of the Australian property development landscape.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Forward Funding Agreement

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc

What is a Forward Funding Agreement?

A Forward Funding Agreement is utilized in property development scenarios where a funder (typically an institutional investor or property company) agrees to acquire a site and fund its development. This sophisticated agreement, tailored for the Australian legal framework, outlines the entire development funding structure, including land acquisition, construction funding, development obligations, and completion requirements. It's particularly relevant for large-scale commercial, residential, or mixed-use developments where developers seek upfront funding commitments. The agreement addresses key aspects such as conditions precedent, payment mechanisms, development obligations, cost controls, and risk allocation, while ensuring compliance with Australian property, planning, and financial services regulations. The Forward Funding Agreement differs from traditional development funding as it typically involves the funder taking a more active role in the development process and assuming certain development risks from the outset.

What sections should be included in a Forward Funding Agreement?

1. Parties: Identifies and defines the key parties: typically the Funder, Developer, and any guarantors

2. Background: Sets out the context of the agreement, including details of the development site and project overview

3. Definitions and Interpretation: Defines key terms and establishes interpretation principles for the agreement

4. Conditions Precedent: Specifies conditions that must be satisfied before the agreement becomes fully effective

5. Funding Obligations: Details the funding structure, payment mechanisms, and funding conditions

6. Development Obligations: Outlines the Developer's obligations regarding the construction and development of the project

7. Construction Program and Monitoring: Establishes timeline, milestones, and monitoring rights of the Funder

8. Cost Control and Reporting: Sets out requirements for cost management, reporting, and cost overrun provisions

9. Title and Security: Addresses property title matters and security arrangements for the funding

10. Risk Allocation and Insurance: Specifies risk distribution between parties and required insurance coverage

11. Variations and Changes: Procedures for handling changes to development plans or specifications

12. Default and Termination: Defines events of default and termination rights and consequences

13. Completion and Handover: Requirements and procedures for practical completion and project handover

14. Representations and Warranties: Standard and specific warranties from all parties

15. General Provisions: Standard boilerplate clauses including notices, governing law, and dispute resolution

What sections are optional to include in a Forward Funding Agreement?

1. Pre-let Requirements: Used when the funding is conditional on securing specific tenant pre-commitments

2. Forward Sale Provisions: Included when there is an agreement for the completed development to be sold to a specific purchaser

3. Step-in Rights: Detailed provisions for Funder step-in rights in case of Developer default, used in higher-risk projects

4. Environmental Obligations: Specific environmental requirements and remediation obligations where site contamination exists

5. Third Party Rights: Required when certain rights are to be extended to third parties such as purchasers or tenants

6. Income Stream Provisions: Used when the funding arrangement includes sharing of income during or after development

7. Joint Venture Provisions: Required when the development is structured as a joint venture

8. Mezzanine Funding Provisions: Included when there are multiple tiers of funding

What schedules should be included in a Forward Funding Agreement?

1. Property Description: Detailed description of the development site including title details and plans

2. Development Plans and Specifications: Detailed technical specifications and approved plans for the development

3. Construction Program: Detailed timeline of construction milestones and completion dates

4. Budget and Cost Plan: Detailed development budget and cashflow projections

5. Form of Collateral Warranties: Standard forms of collateral warranties required from contractors and consultants

6. Professional Team Appointments: List of approved contractors, consultants, and their appointment terms

7. Forms of Security Documents: Templates for guarantees, bonds, and other security documents

8. Reporting Requirements: Templates and requirements for regular financial and progress reporting

9. Pre-let Documentation: Copies or forms of pre-let agreements with tenants

10. Insurance Requirements: Detailed specification of required insurance coverage

11. Form of Payment Notice: Template for funding drawdown notices and payment certificates

Authors

Alex Denne

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

Jurisdiction

Australia

Publisher

Genie AI

Sector

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Property Development

Construction

Financial Services

Infrastructure

Commercial Property

Retail Property

Industrial Property

Urban Development

Mixed-use Development

Relevant Teams

Legal

Finance

Development

Investment

Risk Management

Commercial

Construction

Project Management

Asset Management

Treasury

Compliance

Relevant Roles

Development Director

Finance Director

Investment Manager

Property Lawyer

Construction Manager

Project Manager

Fund Manager

Risk Manager

Commercial Director

Chief Financial Officer

Development Manager

Asset Manager

Quantity Surveyor

Financial Controller

Legal Counsel

Investment Analyst

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Construction Development Agreement

An Australian-law governed agreement establishing the framework for construction development projects, defining parties' rights, obligations, and project requirements.

find out more

Agreement For Development Of Property

An Australian legal agreement governing property development projects, establishing rights and obligations between parties while ensuring compliance with state and federal regulations.

find out more

Plot Development Agreement

An Australian legal agreement between landowner and developer governing the development of a specific plot of land, including rights, obligations, and regulatory compliance requirements.

find out more

Memorandum Of Understanding For Land Development

An Australian jurisdiction non-binding agreement outlining the framework and intentions for a proposed land development project, serving as a precursor to formal development agreements.

find out more

Non Compete Agreement Software Developers

An Australian-law governed agreement that restricts software developers from competing with their former employer or soliciting clients/employees for a specified period post-employment.

find out more

Business Development Contract

An Australian-law governed agreement establishing terms for business development services, including scope, compensation, and performance requirements.

find out more

Area Developer Agreement

An Australian law-governed agreement establishing territorial development rights and obligations between a Principal/Franchisor and an Area Developer.

find out more

Software Outsourcing Contract

An Australian-law governed agreement for outsourcing software development services, defining terms between client and service provider.

find out more

Software Outsourcing Agreement

An Australian-law governed agreement for outsourcing software development services, establishing terms, conditions, and obligations between a customer and development service provider.

find out more

NDA For Software Development

An Australian-law governed NDA designed to protect confidential information in software development projects.

find out more

Letter Of Intent Development Agreement

An Australian law-governed preliminary agreement outlining intentions and key terms for a proposed development project, serving as a framework for a formal Development Agreement.

find out more

Joint Development Agreement Intellectual Property

An Australian law-governed agreement establishing terms for collaborative development projects with focus on IP rights management and protection.

find out more

Custom Software Development Contract

An Australian-law governed contract for custom software development projects, establishing terms between developers and clients.

find out more

Apartment Development Agreement

An Australian-law governed agreement establishing the framework and obligations for apartment complex development, including planning, construction, and compliance requirements.

find out more

Agreement Between Landowner And Promoter

An Australian law-governed agreement between a landowner and event promoter establishing terms for organizing events on private property.

find out more

Developer Contract Agreement

An Australian-law governed agreement for engaging software developers as independent contractors, covering work scope, IP rights, and key commercial terms.

find out more

Website Development And Maintenance Agreement

An Australian-law governed agreement for website development and maintenance services, outlining development scope, maintenance obligations, and ongoing service requirements.

find out more

Exclusive Development Agreement

An Australian-law agreement establishing exclusive rights and obligations between a client and developer for specific development projects.

find out more

Enterprise Development Agreement

An Australian legal agreement governing large-scale development projects, establishing framework, responsibilities, and commercial terms between multiple parties.

find out more

Coal Mine Development And Production Agreement

An Australian law-governed agreement establishing the framework for coal mine development and operation, including key operational, environmental, and safety requirements.

find out more

Software Development Retainer Agreement

An Australian law-governed agreement establishing ongoing software development services between a developer and client on a retainer basis.

find out more

Software Development Agreement Between Two Companies

An Australian-law governed agreement between two companies for custom software development services, outlining development terms, IP rights, and project deliverables.

find out more

NDA For Website Development

An Australian-law governed NDA specifically designed for protecting confidential information in website development projects.

find out more

Joint Technology Development Agreement

An Australian-governed agreement for collaborative technology development between multiple parties, establishing rights, responsibilities, and project governance framework.

find out more

Development Agreement For Redevelopment

An Australian legal agreement governing property redevelopment projects, establishing rights, obligations, and responsibilities of all parties involved in the redevelopment process.

find out more

Comprehensive Development Agreement

An Australian legal agreement governing large-scale property development projects, establishing rights, obligations, and compliance requirements under federal and state/territory laws.

find out more

Builder Developer Agreement

An Australian construction contract that governs the relationship between developer and builder, setting out terms for construction projects under Australian law.

find out more

Software Application Development Agreement

An Australian law-governed agreement for custom software application development, outlining development services, deliverables, and mutual obligations between developer and client.

find out more

Real Estate Development Term Sheet

An Australian jurisdiction document that outlines key terms and conditions for a proposed property development project, serving as a framework for detailed agreements.

find out more

Design Development Agreement

An Australian legal agreement governing design services, outlining terms between design professionals and clients, including scope, IP rights, and deliverables.

find out more

Advance Payment Agreement For Land

An Australian legal agreement governing advance payments in land purchase transactions, ensuring compliance with federal and state property laws.

find out more

Property Development Partnership Agreement

An Australian law-governed agreement establishing a partnership structure for property development projects, defining rights, obligations, and operational procedures between development partners.

find out more

Non Disclosure Agreement Game Development

Australian-compliant NDA for protecting confidential information in game development projects, including code, artwork, and design assets.

find out more

Development License Agreement

An Australian-law governed agreement granting rights to develop and modify licensed technology, with defined development scope and IP provisions.

find out more

Real Estate Development Joint Venture Term Sheet

An Australian-law preliminary agreement outlining key terms for a property development joint venture, setting the framework for formal documentation.

find out more

Memorandum Of Understanding Real Estate Development

An Australian-law governed preliminary agreement outlining parties' intentions and framework for cooperation in real estate development projects.

find out more

Joint Venture Agreement For Development Of Land

An Australian-law governed agreement establishing a joint venture partnership for land development projects, defining parties' contributions, rights, and profit-sharing arrangements.

find out more

Subdivision Agreement

An Australian legal agreement governing the division of land into smaller lots, outlining development requirements and obligations under state/territory legislation.

find out more

Mine Development And Production Agreement

An Australian law-governed agreement establishing the framework for mine development and operation, including rights, obligations, and regulatory compliance requirements.

find out more

Master Developer Agreement

An Australian-law governed agreement establishing the framework between developer and property owner for managing and executing development projects.

find out more
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now