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. See also: Can RERA overturn “mandatory licensing agreements” obtained by contractors for the modification of project plans? “In the leasing sector, tripartite agreements can be made between the lender, the owner/borrower and the tenant. As a general rule, these agreements provide that the lender becomes the new owner/lender if the owner/borrower violates the non-payment clause of the loan agreement. In addition, tenants must accept the lender as a new owner. The agreement also prevents the new owner from amending tenant clauses or provisions,” Bulchandani adds. According to Bulchandani, the tripartite agreements must contain all the information mentioned below: 3 ways to combat rising interest rates on home loans. “In any case, buyers receive a written guarantee from the owner by appointment. In the past, the contract between the contractor and the buyer mentioned the rate at which the buyer received a late penalty, as well as the refund clause. And yet, the buyers were forced to go to the Supreme Court, the NCLT, the RERA or, in this case, the consumer court. In order to reduce the risk of having to issue refunds, it will regularly monitor the progress of the project and ensure that it is completed on time. 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 should contain object information and contain an appendix to all initial ownership documents. In addition, tripartite agreements must be labelled accordingly, depending on the state in which the property is located. “In the leasing sector, tripartite agreements can be made between the lender, the owner/borrower and the tenant.