What is meant by tripartite agreement
It is an agreement signed by three parties--
The Builder. The agreement contains all relevant information, such as the specifics of the property, carpet area (the actual living space that you get) and the amount of loan the bank has provided to the customer. It also mentions the possession date and specifies the penalty clause and its rate, if any. It lists out the obligations of all the 3 parties involved. Banks usually lend against a security, in this case the flat. However, since the flat is not in customer name until possession, the builder gets involved in the agreement with the bank.
Any property agreement mentions the specifics of a particular flat, apart from other details. When any one shift to another project, that person book a new flat with different specifics and details. The loan amount for the new apartment may also vary in keeping with the area specifics of the new flat. Hence, the earlier agreement needs to change even if the builder and the bank you approach are the same.
The new agreement will include the specifics of the new flats and the details of the new loan, apart from other information. But before the new agreement is finalized, any one would have to go through a flurry of paperwork. Any one would have to get the loan approved once again since the bank will do its due diligence on the title of the property and even reevaluate the loan amount to be sanctioned in keeping with the size of the new flat. This would mean you collect all the documents, such as bank statements for the last six months, income proof and income-tax returns, any one submitted to get the first loan sanctioned and also pay a processng fee afresh.
In the wake of the recent land acquisition controversy in Noida Extension area, some builders gave homebuyers the option to shift to another project it was developing. Buyers who agreed to shift had to sign the property agreement afresh and get a loan sanctioned all over again before getting into the new agreement.
Usually, for flats taken on loan, there is a tripartite agreement involved.