A tripartite agreement is a transaction between three separate parties. In the mortgage sector, during the construction phase of a new residential or residential complex, there is often a tripartite or tripartite agreement to guarantee bridge credits for the construction itself. In this case, the loan agreement concerns the buyer, the lender and the owner. In some cases, tripartite agreements may cover the owner of the land, the architect or architect and the contractor. These agreements are in essence “not a fault” of agreements in which all parties agree to correct their errors or negligences and not to make other parties liable for unfaithful omissions or errors. To avoid errors and delays, they often contain a detailed quality plan and determine when and where regular meetings will take place between the parties. In particular, tripartite mortgage contracts become necessary when money is lent for a property that has not yet been built or improved. Agreements resolve potentially conflicting claims about the property if the borrower – usually the future owner – breaks down, or may even die during construction work. A tripartite construction credit contract generally lists the rights and remedies of the three parties from the perspective of the borrower, lender and contractor. It mentions the construction phases, the final sale price, the date of ownership, and the interest rate and maturity of the loan.
It also defines the legal procedure known as sub-rogatory, which determines who, how and when different securities of the property are transferred between the parties. Sub-pricing, as defined in a typical tripartite agreement, clarifies the conditions for the transfer of the property if the borrower does not pay his debts or dies. Tripartite agreements define the different guarantees and contingencies between the three parties in the event of default. For example, in order to ensure timely work planning and quality transformation, the borrower does not want to pay the contractor until the work is completed.