All You Need To Know About Tripartite Agreements

In case a home buyer purchases a property taking a home loan, an agreement is signed among the buyer, seller and the financial institution. This legal document is known as a tripartite agreement, as three parties are involved in the process.

This document is of utmost important, especially if you are buying an under-construction property. While safeguarding the interests of the home buyers, the agreement also states that if the borrower defaults on the loan, the property will be transferred to the lender and the builder has to accept the new owner.

A tripartite agreement is a legal document that clearly states the obligations and responsibilities of all parties involved in the deal. It also elaborated the various terms and conditions that must be followed while carrying out the deal.

At the time of the creation of this documents, a buyer must ensure that the agreement must contain all the relevant information about the property and annexure for original documents. The tripartite agreement needs to be stamped in the state where the property is situated.

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The agreement should act as an instrument for all three parties, claiming their part in the real estate transaction. Other than this:

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