Draft Tripartite Agreement*

This agreement is executed on this …………….. day of ……………………. Two thousand

…………. between Shri/Smt/Ms.…………………………………son of/wife of/daughter of
Shri………………………………….. resident of ………………………………………and
Shri/Smt/Ms…………………………………………son of/wife of/daughter of
Shri………………………………………resident of………………………………… and
Shri/Smt/Ms…………………………………………son of/wife of/daughter of
Shri………………………………….......resident of………………………………………..
hereinafter referred to as the ‘Borrower (s)’ , which term shall unless repugnant to the context
shall mean and include his/her heirs, representatives, successors, executors, attorneys,
administrators and assigns, of the party at the ‘First Part’. AND
M/s……………………………………………………………….. (Name of the
Builder/ Developers), a proprietorship firm/partnership firm/company incorporated under the
provisions of the Companies Act 1956, having its registered office
at……………………………………………………………………………………………… (Address
of Builder/Developer), hereinafter referred to as the ‘Builder/Developer’, which term shall
unless repugnant to the context shall mean and include its representatives, successors,
administrators and assigns, of the party at the ‘Second Part’.
AND
Bank of India, a body corporate, , having amongst others one of its Branch Office
at……………………………….............. (Name and address of Branch), hereinafter referred as
the ‘BOIm, which term shall unless repugnant to the context shall mean and include its
representatives, successors, administrators and assigns, of the party at the ‘Third Part’.
Whereas, the ‘Builder/Developer’ is the absolute owner and in peaceful possession of the
residential property bearing no……………………….. situated at ……………………….
…………………. and whereas……………………………………… (Name of the development
authority) has sanctioned building plan vide…………………………. to construct a residential
apartment on the said property.

Whereas ‘Builder’ has taken up construction of residential apartment known as

……........................... on the said property.
 OR
Whereas, the ‘Builder/Developer’ has been allotted the Plot No. ................ situated at
………………………………………………………………………………. by
the.............................................................(Name of Development Authority)hereinafter
referred to as the `Authority', for the construction of ................... (Number) residential
units/apartments. The Party at the Second Part has already received the possession of the
above-said plot. The building plans have already been approved by the................................
(Name of the building plans sanctioning authority) vide……………………..

Whereas ‘Builder’ has taken up construction of residential apartment known as

……........................... on the said property and whereas the Party at the Second Part has
already paid the entire
consideration amount and the Sale Deed/Lease Deed/Conveyance Deed has already been
executed in its favour and the title of the Party at the Second Part is clear and marketable.
OR

Whereas, the builder/developer has been granted Power of Attorney registered as document
No……………………………at the Sub-Registrar
Office………………………………..by……………………………………………………,the owner
of the land/plot bearing Survey No………………………..situated at……………………….and
whereby, the builder/developer is authorized to develop the property and sell the undivided
share in the land to the prospective purchasers. The builder has also been further authorized
to execute agreement for sale, receive sale consideration and execute sale deed in favour of
the purchasers. Having received possession of the property from the owner, the builder has
taken up construction of the apartment in the land and obtained sanctioned building plan
vide……………………………………………. from the competent authority. The builder has
executed a construction agreement dated……………………. with the borrower for
construction of apartment on the land. [Strike-out the clause whichever is not applicable]

Whereas, the Party at the Second Part shall complete the construction of the flats latest
by……………………. (Date) and is booking the sale of the unit/apartment. The proposed
buyer has to make the payment of the Sale Consideration and other charges, if any, by
……………….. (Date)and on the payment of the entire consideration, the Party at the Second
Part shall hand over the possession of the flat to the said proposed buyer. Whereas, the
Party at the First Part has booked a flat bearing No. ..............., measuring super area/built-up
area…………… sq. ft., (hereinafter referred to as the said flat) in the building which the Party
at the Second Part shall construct on the above said plot and the Party at the First Part has to
pay the entire consideration amount by ....................... (Date).

“Whereas, the party at the Second Part has registered the said real estate project namely
‘--------------------------’ (hereinafter referred to as the Project) with the Real Estate Regulatory

Authority of ------------------------------------ and been granted registration number

--------------------------------- which is
valid and subsisting as on date.

Whereas, the Party at the First Part has approached the Party at the Third Part for availing a
Home Loan of Rs...........................(Rupees….......................................only) to finance the
purchase of the said flat. Besides other securities, the Party at the First Part has agreed to
create the charge over the said flat along with the proportionate undivided share in the land in
favour of the Party at the Third Part. In the absence of proper Conveyance Deed/Sale Deed in
its favour, the Party at the First Part is not in a position to create a valid mortgage over the
said flat and proportionate share of land in favour of the Party at the Third Part.

Whereas, the Party at the First Part and the Party at the Second Part have requested BOI to
disburse the said loan to the Borrower, notwithstanding the fact that the Conveyance
Deed/Sale Deed is not executed in favour of the Party at the First Part at this stage, and in
consideration of the BOI sanctioning the loan to the Borrower(s), the Borrower(s) and the
Builder/Developer have executed this Agreement on the following terms and conditions.

Now therefore it is hereby agreed by and between the parties that:

1. The BOI has and shall have the first lien over the said flat for the due repayment of the
loan which BOI has granted to the Borrower. The Builder shall note in its records the
charge and lien of BOI over the said flat. The Builder shall not transfer the said flat to any
 other person without the prior written consent of the BOI.
2. “That the agreement for sale is already entered into by the borrower and builder /
developer and duly registered OR That an agreement for sale shall be entered into by the
borrower and builder/ developer and duly registered. (Delete the inapplicable clauses).
The said registered agreement for sale is/ shall be delivered to the Bank.”

3. The Builder/Developer agrees that it has no objection to the Borrower(s) mortgaging the
said flat with proportionate share in land to the BOI as security for the said loan agreed to
be advanced by the BOI for the purpose of purchase/construction of the said flat. In the
event of default in the repayment of loan and/ or the Borrower(s) committing any other
default which makes the Borrower(s) liable for the repayment of the entire amount
outstanding in the said loan as per the terms of the Loan Agreement executed between
the Borrower(s) and the BOI, the Builder shall at the request of BOI, be under obligation
to not deliver possession to the Borrower and/or to cancel the booking and pay all
amounts received by the Builder on behalf of the Borrower(s) to BOI including also any
amount paid by the Borrower to the Builder. However, the builder/developer shall be
entitled to recover cancellation and/or any other charges, if any payable by the Borrower
under the terms of application form for purchase of the said flat and/or agreement to sale/
construction out of the Borrower’s contribution. Upon payment of the amounts by the
Builder/Developer to BOI as aforesaid, the BOI and the Borrower will not have any claim,
charge, lien, mortgage, right, title and interest etc. whatsoever, over the said flat. BOI
shall issue a certificate to release any mortgage/charge/lien created on the said flat. The
Borrower hereby expressly agrees that in the event of default in either repayment of the
loan or any other default by the Borrower, BOI shall be entitled to request the Builder to
cancel the booking and return the amounts received by the Builder and the Borrower
agrees and acknowledges that any such request by BOI and payment made by the
Builder under this clause to BOI shall be binding upon the Borrower.

4. That if for any reason there is any increase/escalation in the cost of the said flat, the
increase shall be paid and borne by the Borrower(s) without any reference to the BOI and
until such payment is made, the BOI shall have the right to suspend further disbursement
of the said loan.
5. That in the event of the Builder cancelling the said booking for any default committed by
the Borrower(s) or the project is shelved by the Builder or for any other reason
whatsoever, the Builder shall pay the entire amount received on behalf of the Borrower(s)
to the BOI. However, the builder/developer shall be entitled to recover cancellation and/or
any other charges, if any payable by the Borrower under the terms of application form for
purchase of the said flat and/or agreement to sell/construction out of the Borrower’s
contribution only in the instance where the Borrower has cancelled the booking of the flat
or has committed any default.
4. That on the receipt of the entire consideration amount, the Builder shall execute a proper
Conveyance Deed/Sale Deed/Lease Deed in favour of the Borrower. The Builder
undertakes to deliver the same along with original registration fee receipt directly to the
BOI and not to the Borrower(s). Before the execution of the Sale Deed/Conveyance
Deed/Lease Deed, the builder shall inform the BOI about the same on the completion of
the project.
5. That the builder agrees that the loan amount may be credited to the loan account
no…………………………………with………...……………………………… (Name of the
Bank & Branch), from where the builder have availed financing facility for the project.
[Wherever applicable]
6. That the Borrower(s) shall also keep informed the BOI about the developments in the
project. The Borrower shall notify the BOI the date of taking over the possession of the
said flat. In case the Borrower(s) comes into possession of the Lease Deed/Conveyance
Deed/Sale Deed, he/she shall immediately deliver the same to the BOI.
7. That the Borrower(s) assures that he/she will not avail finance from any other Bank or
Financial Institution in respect of the aforesaid flat and/or will not create further
mortgage/charge over the said flat (allotted to the borrower) in any manner whatsoever.

8. That the Borrower(s) shall pay all charges, duties, taxes in respect of the said flat
imposed or payable to the Builder/Developer and or to Corporation or any other
Government Department/Authority in respect of the said flat and the BOI shall not be
liable or responsible in any manner whatsoever or howsoever for the same.

9. That the Borrower(s) agrees and acknowledges to keep the BOI indemnified against any
 loss or damage incurred by it in the event of failure of the Borrower(s) to honour or to
meet any of its obligations under this Agreement in connection with the sanctioning of the
loan in respect of the said flat.
10. That during the currency of the loan, the Borrower(s) shall not transfer the said flat to any
other person, without the prior written consent of the BOI. The Builder/Developer shall not
issue the duplicate allotment letter/possession letter to the Borrower(s) without the prior
written consent of the BOI.
11. It is understood that the term ‘loan’ mentioned herein shall include interest, penal interest
and all other sums payable by the borrower(s) to the BOI.
12. That in the event of any default by the Borrower(s), the BOI may at its discretion enforce
the security by the sale and the Builder shall accept the Purchaser of the said flat in place
of the Borrower(s), after the Purchaser complies with the necessary requirements of the
Builder/Developer in this respect.
13. That the Builder assures the BOI that the construction shall be completed as per
schedule and as per the sanctioned plans and on completion of construction, the title of
the flat with proportionate undivided share in the land shall be conveyed in the name of
the Borrower(s).
14. That it is further made clear and understood by all the parties that the non completion of
the project or the happening of any event shall not affect the obligations of the Borrower
(s) to repay the loan availed from BOI.
15. That the said flat is free from all encumbrances, charges, lien, attachment, prior
agreements, whatsoever or howsoever. The party at first part and second part will not do
any act or deed which will affect the security of the flat/ or charge created in favour of BOI
in any manner whatsoever.
16. That there is no order of attachment by the Income Tax Authorities or any other authority
under any law for the time being in force nor any notice of acquisition or requisition has
been received in respect of the said property,

17. That this Agreement shall not affect in any manner whatsoever the duties and obligations
of the Borrower(s) and the terms and conditions agreed to by the Borrower(s) in the Loan
Agreement and other documents executed in favour of BOI shall remain binding upon the
Borrower(s),
18. That in case of acquisition, forfeiture/resumption of the said property, BOI shall be
entitled to get the compensation settled in respect of the said flat and to appear and act
before the Collector/Revenue Officer/Estate Officer or any other concerned authorities, to
sign any form, to give any statement, affidavit, application on Borrower's behalf, to receive
the compensation in its own name and on the Borrower's behalf, to file appeal in any
court for the enhancement of the compensation amount, to get the compensation amount
enhanced and to receive the same.

19. “That the builder/ developer and borrower agree that they shall comply with the provisions
of Real Estate - (Regulation and Development) Act, 2016 and Rules thereunder. The
builder/ developer and borrower agree - that they shall inform the Bank immediately upon
suspension or revocation of registration of the Project - under the said Act. In the event of
borrower claiming any amount including but not limited to refund of amount - paid with
interest or compensation or interest for delay from the builder/ developer under the above
Act for - any reason, the builder/ developer shall make payment of such amount directly to
the Bank and the borrower - agrees that such payment to the Bank shall be binding on
him and deemed to be a discharge of his liability to - the extent of the money so paid to
the Bank.

20. The responsibilities of the builders under this tripartite agreement will be extinguished
only after delivering the duly registered Conveyance Deed/Sale Deed/Lease Deed directly
to the Bank and handing over the possession of the residential unit to the borrower(s) and
thereafter the validity of the Tripartite Agreement will come to an end.

In witness whereof the parties hereto have signed this Agreement on the day, month and
year first herein above written.

Signed and delivered by the:

Named Borrower (s)
 i) Shri/Smt/Ms
ii) Shri/Smt/Ms
iii) Shri/Smt/Ms
Signature of Borrower (s)
Authorized signatory of Builder M/s (name& Address)
Bank of India, represented by its authorized official (Name & address of office/ Branch)

Signature

Witness:
Name & Address
1. Shri/Smt/Ms Signature
2. Shri/Smt/Ms Signature