This technique of the forward-funding contract therefore has the advantage for the distributor to have directly the financing necessary for the construction of the building, without having to take on a large amount of debt with the banking institutions. He also has a guarantee that he has a buyer for his building. However, the application of this method implies a lower advantage than that of the purchase agreement. The execution of a forward-purchase contract is divided into three main steps: the pre-financing contract is a synallagmatic contract for the sale of future real estate between the seller of real estate and the investor-buyer, in which the client undertakes to build and sell a property to the buyer, but with the particularity that the financing of the building must be exclusively on the buyer/investor, who must therefore bear all the costs associated with this construction. However, in principle, contractors set a limit (a maximum payment). Forward purchase is a synallagmatic contract for the sale of a future property between the client and the investor-buyer, by which the seller agrees to complete the construction of the property (he is a developer) within a specified time frame and to pass it on to the buyer. For their part, the investor and buyer agrees to buy the building once it is built and to pay the price if it is given to it. As a general rule, it also undertakes to commercialize the property under specified economic conditions and time frames. The sale of buildings under construction can be done through various contracts, such as the forward purchase agreement or the forward funding agreement, both of which are derived from Anglo-Saxon practice. These two contracts, widely used in large real estate transactions, have developed strongly in Spain, where they have served as the basis for the development of special contracts, so-called hybrids, which can overlap one or the other element of each of these two contracts. As a general rule, the distributor transfers ownership of the land to the buyer/investor at first, which corresponds to the signing of the financing contract in advance, or shortly thereafter, if certain conditions are met. As a result, the buyer becomes the owner of the land before or at the same time when construction of the building begins. The total acquisition price is set in advance by the contracting parties before the work begins.
The Agent shall not be accountable with respect to the validity or value (or the kind or amount) of any shares of Common Stock, or of any securities or property, which may at any time be issued or delivered with respect to any Forward Purchase Contract; and the Agent makes no representation with respect thereto.