A tripartite agreement signifies the role and responsibilities of all parties involved, with the exception of basic information about them. The product also offers loans of up to Rs 400 crore to “renowned” residential developers. As part of the program, the Bank has committed to repay the principal amount of the loan if the developer does not complete the project. This means that if a buyer booked an apartment for Rs 2 crore and paid Rs 1 crore, he only got Rs 1 crore back if the project gets stuck. No interest is repaid. This means that by offering a guarantee on the money spent on the house, SBI ensures that the buyer of the house has no reason to initiate insolvency proceedings in the event of a project delay or failure. In this case, SBI grants credits to project owners and home buyers. You have a right of pledge over the property, the country and various other guarantees. The guarantee is part of their belief that they can lead the client to complete the project in accordance with the RERA chronology. SBI Chairman Rajnish Kumar was quoted as saying that SBI wants to remove the “bankruptcy of home buyers and operational creditors” through this system. A tripartite agreement must be signed by these three parties – which makes the document worth its name – if a buyer opts for a home loan to buy a house in a project under construction.
“In any case, buyers shall receive a written guarantee with the agreement of the contracting authority. In the past, the contracting authority`s purchase contract has mentioned the rate of granting a penalty to the buyer of the house in the event of delay, as well as the reimbursement clause. . . .