“By law, any developer who builds a housing company must enter into a tripartite written agreement with any buyer who has already purchased or will buy a home in the project,” explains Vijay Gupta, CMD, Orris Infrastructures. “This agreement clarifies the status of all parties involved in real estate transactions and keeps an eye on all documents,” he said. 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. Tripartite agreements are usually signed for the purchase of units in basic projects. If the Bank`s central office is not aware of details of the advances that have yet to be created in favour of the bank, how will the head office be able to monitor the process of collecting securities by all of its branches? He is showing a lack of caution on the part of these commercial banks, which must be corrected as soon as possible. See also: Buyers should be careful in real estate joint ventures The bank tends to make residential loans as part of a “tripartite agreement” for residential projects under construction. As part of such an agreement between the bank, the owner and the borrower, the owner undertakes to carry out the deed of sale of the apartment for the benefit of the borrower after the completion of the project (after about 18-20 months) and the borrower in turn agrees to create a fair mortgage or ONE of that dwelling for the benefit of the bank.
In this way, the bank indirectly finances the owner under the guise of a home loan. “In the leasing sector, tripartite agreements can be made between the lender, the owner/borrower and the tenant. As a general rule, these agreements stipulate that if the owner/borrower violates the non-payment clause of the loan agreement, the lender/lender becomes the new owner of the property. In addition, tenants must accept the mortgage lender as their new owner. The agreement also prevents the new owner from amending tenant clauses or provisions,” Bulchandani adds. Among public sector banks, SBI is the leader, followed by BoB and UBI. In the private sector, HDFC Bank is busy promoting such unsecured housing loans. 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.Originally published on April 12, 2021