The aim is to facilitate the thirty parties that behave as a confirmation party. If the registered company is included as a third party to the agreement to sell a home, it means that the company has no problem with that transaction and is aware of all related issues. In the case of the developer, it is the developer`s duty to ensure that the property sold to the purchaser is free of any burden. If there is a misrepresentation of the facts by the developer, then the developer will be reported to the regulator and will be punished under the respective state law. The developer may have to pay a hefty fine or, in extreme cases, lose the property development license. Under such a tripartite system of home loans, the buyer is not obliged to pay the EMIs until the apartment is delivered or given to the buyer for the period up to the completion of the construction, regardless of the situation. The developer pays during this period the payments pay the bank. In the development of the tripartite agreement, the following points should be taken into account: there are many issues to be considered in such agreements and it is highly recommended that appropriate advice be provided on the terms of these agreements. Conditions should be negotiated, if necessary, before they take years to avoid the frequent misunderstandings and pitfalls that can be devastating, which usually result from the non-processing of these documents with the attention they need. 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. 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.