Forward Purchase Agreement (Real Estate) for Ireland

Forward Purchase Agreement (Real Estate) Template for Ireland

A Forward Purchase Agreement governed by Irish law is a legally binding contract where a purchaser commits to buying a property that is either yet to be built or under construction, typically at a pre-agreed price. The agreement sets out detailed terms and conditions for the future purchase, including specifications for the property, construction requirements, payment schedule, and completion mechanisms. It incorporates Irish property law requirements, planning regulations, and specific provisions for ensuring compliance with local building standards and conveyancing practices.

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What is a Forward Purchase Agreement (Real Estate)?

The Forward Purchase Agreement (Real Estate) is a sophisticated legal instrument used in Irish property transactions where parties wish to agree on the future sale and purchase of real estate, typically before construction is completed. This document is particularly valuable in development projects where investors or occupiers want to secure future property interests, or where developers seek to pre-sell assets to fund development. The agreement must comply with Irish property law, including the Land and Conveyancing Law Reform Act 2009 and relevant planning legislation. It contains detailed provisions covering construction specifications, completion conditions, title requirements, and payment mechanisms, while addressing risk allocation between parties during the development phase. The document is commonly used in commercial property development, mixed-use schemes, and large-scale residential projects across Ireland.

What sections should be included in a Forward Purchase Agreement (Real Estate)?

1. Parties: Identification of the seller/developer and purchaser with full legal names and addresses

2. Background: Context of the transaction, including property details and purpose of the forward purchase arrangement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Sale and Purchase Commitment: Core agreement to sell and purchase the property upon completion, including purchase price and payment structure

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

6. Property Specifications: Detailed description of the property and any construction/development requirements

7. Purchase Price and Payment Terms: Detailed breakdown of purchase price, deposit requirements, and payment schedule

8. Completion Requirements: Conditions and procedures for completion of the purchase

9. Title and Registration: Requirements regarding title, searches, and registration of the property

10. Representations and Warranties: Standard and specific warranties from both parties

11. Construction and Development Obligations: Requirements for construction, quality standards, and timeline

12. Variations and Changes: Process for handling changes to specifications or requirements

13. Risk and Insurance: Allocation of risk and insurance requirements during construction and until completion

14. Default and Termination: Consequences of default and termination rights

15. Notices: Process for formal communications between parties

16. Governing Law and Jurisdiction: Confirmation of Irish law and jurisdiction

What sections are optional to include in a Forward Purchase Agreement (Real Estate)?

1. Development Conditions: Used when the property is part of a larger development requiring specific conditions

2. Planning Permission: Required when the agreement is conditional on obtaining specific planning permissions

3. Environmental Provisions: Included when environmental issues or requirements need specific attention

4. Third Party Rights: Required when there are existing tenants or other third-party interests

5. Financing Conditions: Used when completion is dependent on specific financing arrangements

6. VAT Provisions: Detailed VAT treatment when applicable to the transaction

7. Step-in Rights: Included when funders require right to step in to complete the purchase

8. Pre-completion Obligations: Specific obligations before completion, if required

9. Post-completion Obligations: Ongoing obligations after completion, if any

10. Dispute Resolution: Alternative dispute resolution procedures if preferred to standard court proceedings

What schedules should be included in a Forward Purchase Agreement (Real Estate)?

1. Property Description: Detailed legal description of the property including maps and plans

2. Specifications: Detailed construction and finishing specifications

3. Payment Schedule: Detailed breakdown of payment installments and timing

4. Form of Transfer: Agreed form of transfer deed to be used at completion

5. Planning Permissions: Copies or details of relevant planning permissions

6. Title Documents: List of title documents and copies of key documents

7. Construction Programme: Detailed construction timeline and milestones

8. Practical Completion Requirements: Specific requirements for achieving practical completion

9. Warranties: Forms of construction warranties to be provided

10. Site Plan: Detailed plans showing the property and any relevant surrounding areas

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

Ireland

Publisher

Genie AI

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate Development

Commercial Property

Property Investment

Construction

Real Estate Finance

Property Management

Urban Development

Residential Property

Mixed-use Development

Infrastructure

Relevant Teams

Legal

Real Estate

Development

Investment

Finance

Construction

Risk and Compliance

Commercial

Planning

Operations

Relevant Roles

Real Estate Director

Development Manager

Property Investment Manager

Legal Counsel

Commercial Director

Construction Manager

Finance Director

Asset Manager

Project Manager

Risk Manager

Acquisitions Manager

Property Director

Planning Consultant

Investment Analyst

Transaction Manager

Industries
Land and Conveyancing Law Reform Act 2009: Primary legislation governing property transactions in Ireland, including requirements for contracts, property rights, and conveyancing procedures
Registration of Title Act 1964: Deals with the registration of property titles and interests in land, crucial for ensuring proper title transfer in forward purchase agreements
Planning and Development Act 2000: Regulates planning permission and development, essential for forward purchase agreements involving new construction or development
Stamp Duties Consolidation Act 1999: Governs stamp duty obligations on property transactions, including specific provisions for forward purchase agreements
Consumer Protection Act 2007: Relevant if one party is a consumer, providing protection against unfair terms and requiring specific disclosures
Capital Acquisitions Tax Consolidation Act 2003: Relevant for tax implications of property transfers and forward purchase arrangements
Statute of Frauds (Ireland) 1695: Historical but still relevant legislation requiring certain contracts, including those for land, to be in writing
Civil Law (Miscellaneous Provisions) Act 2011: Contains various provisions affecting property transactions and contract law in Ireland
Multi-Unit Developments Act 2011: Relevant if the forward purchase involves apartment units or multi-unit developments
Building Control Acts 1990-2014: Important for ensuring compliance with building regulations, particularly relevant for forward purchases of properties under construction
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

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