Tripartite acts or agreements are agreements between the developer (or master), the owner and the financier (usually the bank) that define the rights and obligations of the parties with respect to the completion of construction work and the procedures for managing defaults in the context of a loan or under the construction contract. If the property in question has a clear title and the price offered by the developer for the basic property is based on the market price, it is a good idea to enter into this agreement. 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. If a tripartite agreement is reached, the buyer should negotiate the price of the sub-land with the developer. The buyer should also try to get the best terms, maximum limit and competitive interest rate from the bank for the loan. The term of the loan should also be negotiated. A tripartite agreement means the role and responsibilities of all parties involved, with the exception of basic information about them. The agreement should be concluded in accordance with the laws of the state in which the property is located, so that measures can be taken in the event of a breach of an appropriate contract. The agreement should therefore bear the registration stamp of the state concerned, as well as information on the title of ownership and original title. A tripartite agreement is a transaction between three separate parties.
In the mortgage sector, during the construction phase of a new residential or residential complex, there is often a tripartite or tripartite agreement to guarantee bridge credits for the construction itself. In this case, the loan agreement concerns the buyer, the lender and the owner. For example, in order to ensure timely work planning and quality transformation, the borrower does not want to pay the contractor until the work is completed. But the owner may not be paid once the work is completed, when he himself owes money to suppliers such as plumbers and electricians. In this case, a contractor may claim a “pledge” in the field; That is, the right to deontisation if they are not paid. In the meantime, the bank is also entitled to the property if the borrower is late in the loan.