An agreement that mentions the names of the three parties. The three parties to this agreement are the buyers, the sellers and the bank or financial institution. The reason for the preparation of the tripartite agreement is that the property is not registered in the home buyer`s name, but he/she is required to use the real estate credit to purchase the same thing. In this scenario, the bank lists the developer as the owner of the property, so that home loans can be sanctioned within the minimum amount of time. These three parties must sign a tripartite agreement worthy of the document`s name when a buyer chooses a home loan to purchase a home in a basic project. See also: Can RERA overturn “mandatory licensing agreements” obtained by contractors for the modification of project plans? According to Mr. Bulchandani, the tripartite agreements must contain all the information mentioned below: according to the experts, tripartite agreements have been concluded to help buyers acquire financing from banks against the planned purchase of a house by a developer. This document contains the obligations and responsibilities of all parties to purchase real estate. The tripartite agreement should represent the developer or seller by indicating that the property has a clear title. In addition, it should also be noted that the developer has not entered into a new agreement for sale ownership with another party.
For example, the Maharashtra Ownership of Flats Act of 1963 requires full disclosure of all relevant information regarding the property acquired from the seller/developer to the buyer. The tripartite agreement should also include the developer`s commitments to build the building in accordance with approved plans and specifications approved by the local authority. A tripartite agreement is the most important legal document involving the buyer, the bank and the seller. This is the document that is needed when a buyer opts for a home loan to buy a home in a basic project. “Tripartite agreements have been reached to help buyers acquire home loans against the proposed purchase of the property. As the house/apartment is not yet in the client`s name, the owner is included in the agreement with the bank,” said Rohan Bulchandani, co-founder and president of the Real Estate Management Institute™ (REMI) and Annet Group. “In the leasing sector, tripartite agreements can be made between the mortgage lender/lender, the landlord/borrower and the tenant. As a general rule, these agreements stipulate that if the owner/borrower violates the non-payment clause of the loan agreement, the lender/lender becomes the new owner of the property.
In addition, tenants must accept the mortgage lender as their new owner. The agreement also prevents the new owner from amending tenant clauses or provisions,” Bulchandani adds. The conditions set out in these agreements can be complex and therefore difficult to understand. It is advisable that buyers seek the help of legal experts to review the document. If this is not the case, this may lead to complications in the future, especially in the event of litigation or delay.