According to Bulchandani, tripartite agreements must contain all the information mentioned below: in addition, this agreement helps the bank to track all documents related to the property and can also have a record of transactions between the buyer and seller. The tripartite agreement should bear the stamp of the State in which the property is located and should also include the details of the property and the original documents relating thereto. “According to the law, any developer who builds a housing association must enter into a written tripartite agreement with any buyer who has already purchased an apartment in the project or who is about to buy an apartment,” says Vijay Gupta, CMD, Orris Infrastructures. “This agreement clarifies the status of all parties involved in real estate transactions and keeps an eye on all documents,” he says. Like any other legal document, creating a tripartite agreement also requires details such as: This is a legal document that directly involves the buyer, seller, and financial lender, i.e. the bank, and this document is especially required when a home buyer is looking for a home loan available to buy a property currently under construction. Aspiring homeowners are offered support with this legal document, as the property is not transferred in the name of a home buyer until the property and therefore the seller/developer must be included in the tripartite agreement with the bank. According to experts, tripartite agreements have been reached to help buyers acquire funds from banks in exchange for the planned purchase of a home from a developer. Delegation as defined in a typical tripartite agreement clarifies the requirements for the transfer of the property in case the borrower fails to pay its debts or passes. A tripartite agreement is a trade agreement between three different parties. In the mortgage industry, a tripartite or tripartite agreement often takes place during the construction phase of a new residential complex or condominiums to obtain so-called bridge loans for the construction itself.
In such cases, the loan agreement involves the buyer, lender and builder. An agreement that mentions the names of the three parties. The three parties included in this Agreement are the buyers, sellers and the bank or financial institution. The reason behind the preparation of a tripartite agreement is that the property is not registered in the name of the buyer of the house, but he is required to take out a home loan to buy the same. .