The tripartite agreement should represent the developer or seller who states that the property has clear title. In addition, it is also worth mentioning that the developer has not entered into any new contract with any other party for the sale of the property. For example, the Maharashtra Ownership of Flats Act, 1963, requires full disclosure from the seller/developer to the buyer on all details relevant to the purchased property. The tripartite agreement should also include the developer`s obligations to construct the building in accordance with approved plans and specifications approved by the local authority. «Tripartite agreements have been concluded to help buyers acquire real estate loans against the proposed purchase of the property. As the house/apartment is not yet in the client`s name up to the property, the client is included in the agreement with the bank,» says Rohan Bulchandani, co-founder and chairman, Real Estate Management Institute™ (REMI) and The Annet Group. According to experts, tripartite agreements have been concluded to help buyers acquire financing from banks against the project to buy a house by a real estate developer. Tripartite agreements should contain details of the purpose of the property and contain an annex to all original documents. In addition, tripartite agreements must be stamped accordingly, depending on the State in which the property is located.
What are the main details mentioned in the tripartite agreement? A tripartite agreement signifies the role and responsibilities of all parties involved, with the exception of basic information about them. Why is a tripartite agreement important? This document defines the obligations and responsibilities of all parties to the purchase of real estate. What do tripartite agreements contain? Tripartite agreements should contain details of ownership and contain an appendix to all original documents. What type of real estate activity requires tripartite agreements? Tripartite agreements are usually signed for the purchase of units in projects under construction. Tripartite agreements are usually signed for the purchase of units in projects under construction. «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.