A tripartite agreement in property development is a crucial legal document that outlines the roles and responsibilities of three parties involved in a real estate project. These parties are the developer, the lender, and the buyer.

The tripartite agreement serves as a binding contract that ensures all parties involved in the project fulfill their obligations and responsibilities. It also helps to minimize the risk of any legal disputes that may arise.

The developer initiates the property development project and prepares the building plan, drafts the construction agreement, and secures all necessary permits and licenses. They are responsible for the construction of the property, maintaining it until the property is handed over to the buyer.

The lender provides the funding for the project and expects to receive repayment of the loan amount agreed upon with interest. The loan is typically a percentage of the total cost of the project and is disbursed in stages according to the progress made by the developer.

The buyer, on the other hand, purchases the property from the developer and pays the agreed price. They are responsible for maintaining the property after acquiring it.

In the tripartite agreement, the developer agrees to complete the project based on the agreed timeline and budget. The lender agrees to disburse funds in installments according to the agreed schedule and ensure that the funds are used only for the intended purpose.

The buyer agrees to make payments as agreed and take possession of the property once the project is completed. They also agree to maintain the property and pay any outstanding fees or taxes.

In summary, a tripartite agreement is a vital document that protects the interests of all parties involved in a real estate project. It helps to ensure that the project is completed successfully and that all parties fulfill their obligations and responsibilities. Therefore, it is essential to ensure that the agreement is comprehensive, clear and legally enforceable.