“Under the law, any developer who builds a housing company must enter into a written tripartite agreement with any buyer who has already purchased an apartment in the project or is about to buy a home,” says Vijay Gupta, CMD, Orris Infrastructures. “This agreement clarifies the status of all parties involved in real estate transactions and monitors all documents,” he says. The conditions set out in such agreements can be complex and therefore difficult to understand. It is advisable that buyers seek the help of legal experts to look into the document. Failure to do so may result in complications in the future, especially in the event of litigation or project delay. “In the leasing sector, tripartite agreements can be concluded between the lender, the owner/borrower and the tenant. These agreements usually stipulate that if the owner/borrower violates the non-payment clause of the loan agreement, the mortgage lender/lender becomes the new owner of the property. In addition, tenants will then have to accept the mortgage/lender as the new owner. The agreement also prevents the new landlord from changing the tenants` clauses or provisions,” Bulchandani adds. In the Indian real estate sector, a tripartite agreement is an agreement between three parties – the buyer, the bank and the seller/developer. The tripartite agreement lists the obligations of the three parties concerned.
This agreement contains all the details of the mortgage for the house/apartment, the rights and commitments of all parties include the specifications of the property, the surface of the carpet and all the details regarding the loan/financing of the property, the date of possession of the property and specifies the details of the penalty clause. Tripartite agreements have been concluded to help buyers acquire real estate loans against the proposed purchase of the property. Since the house/apartment is not yet in the name of the client up to the property, the client is included in the agreement with the bank. In particular, three-party mortgage contracts become necessary if the money is lent for real estate that has not yet been built or improved. Agreements resolve potentially conflicting claims about the property if the borrower – usually the future owner – is late or perhaps even dying during construction. A tripartite agreement is a business agreement between three different parties. In the mortgage sector, during the construction phase of a new housing complex or condominium complex, a tripartite or tripartite agreement is often concluded in order to guarantee so-called bridge loans for the construction itself. In such cases, the loan agreement involves the buyer, the lender and the contracting authority. Tripartite agreements should contain details of ownership and contain an appendix to all original documents….