If you`re about to embark on a property purchase with HDFC, you may come across the term “tripartite agreement”. This is a legal document that outlines the agreement between the lender, borrower, and developer regarding the property being financed.
The tripartite agreement format for HDFC typically includes the following information:
1. Identification of the parties involved – This includes the name, address, and contact details of all parties involved in the agreement.
2. Property details – This includes the address, survey number, and other relevant details about the property being financed.
3. Loan amount – The agreement will specify the loan amount being disbursed by HDFC.
4. Repayment terms – The agreement will outline the repayment terms of the loan, including the interest rate and the tenure of the loan.
5. Escrow account – The tripartite agreement may also require the developer to open an escrow account to manage the funds disbursed by HDFC.
6. Disbursement schedule – The agreement may also specify the disbursement schedule for the loan, including the stages at which the loan will be disbursed.
7. Compliance – The developer will be required to comply with all legal and regulatory requirements related to the property.
8. Default – The tripartite agreement will outline the consequences of default by any of the parties involved.
Why is a tripartite agreement necessary?
A tripartite agreement is necessary to protect the interests of all parties involved in the property purchase. By outlining the agreement between the lender, borrower, and developer, the document ensures that everyone is aware of their rights and obligations.
For HDFC, the tripartite agreement ensures that the disbursement of the loan is linked to the progress of the construction of the property. This reduces the risk of default by the developer and ensures that the borrower`s investment is protected.
In conclusion, if you`re planning to finance a property purchase with HDFC, it`s important to understand the tripartite agreement format. This legal document is essential to ensure that all parties involved are aware of their rights and obligations, and it protects the borrower`s investment in the property.