But the client may not be paid once the work is completed, while he himself owes money to subcontractors such as plumbers and electricians. In this case, a developer may assert what is known as a construction deposit right on the property; That is, the right to forfeiture if they are not paid. In the meantime, the bank also maintains a right to the property if the borrower is late in the credit. According to Bulchandani, tripartite agreements must contain all the information mentioned below: a tripartite agreement is a business relationship between three separate parties. In the mortgage sector, during the construction phase of a new housing complex or condominium complex, a tripartite or tripartite agreement is often concluded in order to guarantee so-called bridge loans for the construction itself. In such cases, the loan agreement involves the buyer, the lender and the contracting authority. « Under the law, any developer who builds a housing company must enter into a written tripartite agreement with any buyer who has already purchased an apartment in the project or is about to buy a home, » says Vijay Gupta, CMD, Orris Infrastructures. « This agreement clarifies the status of all parties involved in real estate transactions and monitors all documents, » he says. 3 ways to counter rising interest rates on housing loans. The conditions set out in such agreements can be complex and therefore difficult to understand. It is advisable that buyers seek the help of legal experts to look into the document.
Failure to do so may result in complications in the future, especially in the event of litigation or project delay.