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. 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. “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. See also: Can RERA overturn “mandatory licensing agreements” obtained by contractors for the modification of project plans? Tripartite agreements should include information on real estate and contain an appendix to all initial ownership documents.
“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. Tripartite agreements are usually signed for the purchase of units in basic projects. These three parties must sign a tripartite agreement worthy of the document`s name when a buyer chooses a home loan to purchase a home in a basic project. 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.