Document background
Forward Funding Agreements are utilized in the Netherlands when investors seek to secure development opportunities at an early stage while developers require upfront and ongoing funding for their projects. This comprehensive agreement, structured under Dutch law, outlines the entire development financing relationship, including land acquisition, construction funding, development obligations, and completion requirements. The Forward Funding Agreement is particularly crucial for large-scale commercial developments where traditional funding methods may not be suitable. It addresses key aspects such as payment structures, risk allocation, construction monitoring, and quality requirements, while ensuring compliance with Dutch financial regulations and construction laws. The document is essential for projects where investors wish to secure future assets while maintaining control over the development process.
