What Is A Tripartite Agreement In Construction

A tripartite agreement must be signed by these three parties – for the document to earn its name – when a buyer opts for a home loan to buy a house in a project under construction. Since this is a tripartite agreement, the agreement should include the names of the three parties to the agreement. It is the borrower`s duty to ensure that the loan is repaid with principal and interest in accordance with the payment plan. The agreement clearly states that in case of delay in the repayment of the loan by the borrower, the ownership has been transferred to the bank. For the borrower, the violation of his rights and obligations leads to the loss of ownership of the property. The situation is somewhat different if the tripartite agreement is drafted under industrial leasing. Again, three parties are at stake, i.e. the landlord, the lender and the tenant. If the property was complete, it would be a two-way agreement between the borrower and the lender. Since the borrower is not in possession of the property, the name of the builder must be included in the agreement, making it a tripartite agreement. With all these documents related to loans and the like, where many conditions exist and must be met, it is important that you get clear and impartial advice so that you can understand what is expected. .