The conditions set out in these agreements can be complex and therefore difficult to understand. It is advisable that buyers seek the help of legal experts to review the document. If this is not the case, this may lead to complications in the future, especially in the event of litigation or delay. A tripartite agreement means the role and responsibilities of all parties involved, with the exception of basic information about them. Tripartite agreements are usually signed for the purchase of units in basic projects. According to Mr. Bulchandani, the tripartite agreements must contain all the information mentioned below: the sub-pricing, as defined in a typical tripartite agreement, clarifies the conditions for the transfer of the property if the borrower does not pay his debts or die. A tripartite construction credit contract generally lists the rights and remedies of the three parties from the perspective of the borrower, lender and contractor. It mentions the construction phases, the final sale price, the date of ownership, and the interest rate and maturity of the loan. It also defines the legal procedure known as sub-rogatory, which determines who, how and when different securities of the property are transferred between the parties. Tripartite agreements should include information on real estate and contain an appendix to all initial ownership documents. According to experts, tripartite agreements have been reached to help buyers acquire funds from banks against the proposed purchase of a home from a developer.

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. “Tripartite agreements have been reached to help buyers acquire home loans against the proposed purchase of the property. As the house/apartment is not yet in the client`s name, the owner is included in the agreement with the bank,” said Rohan Bulchandani, co-founder and president of the Real Estate Management Institute™ (REMI) and Annet Group.