Consider a regular contract or agreement: A person has agreed with someone else to do something in return for a valuable item (called „counterparty“ in contract law). One of the most common forms of the agreement is a contract or an employment contract. But sometimes you may need to agree on an agreement between three people or different „parties.“ Here, a tripartite agreement – literally „triparti“ – can be useful. The developer and the company entered into a sales agreement in which the company purchased several off-plan units in one tower and entered into a down payment of AED 8.5 million (approximately $2,322,404). Subsequently, to finance the purchase, the company obtained a loan from Istisna`a from the bank. As a result, the three parties entered into a tripartite transfer agreement, under which the bank would replace the company as part of the original sale contract and thus effectively be on the back of the company. Subsequently, the bank signed a separate agreement with the developer to ensure payment of financing rates against closing. This decision confirms that the courts maintain an agreement between the parties (subject to their power to interpret the contract and its terms – as long as they do not contra in the law). Where a contract between the parties contains obligations and rights, the Court has no choice but to comply and render its judgment on the basis of the content, clauses and terms of the agreement. According to Mr. Bulchandani, the tripartite agreements must contain all the information mentioned below: „Tripartite agreements have been concluded to help buyers acquire home loans against the planned purchase of the property. As the house/apartment is not yet in the client`s name, the owner is included in the agreement with the bank,“ said Rohan Bulchandani, co-founder and president of the Real Estate Management Institute™ (REMI) and Annet Group. What are the main details mentioned in the tripartite agreement? A tripartite agreement means the role and responsibilities of all parties involved, with the exception of basic information about them.
Why is a tripartite agreement important? This document contains the obligations and responsibilities of all parties to purchase real estate.