Glossary
Tripartite Agreement
A tripartite agreement is a contract between you, the builder and your bank for an under-construction flat, setting how the loan is paid and secured.
In plain words
When you buy a flat that is still being built, there is no finished home yet for the bank to take as security, and no sale deed in your name. The tripartite agreement fills that gap. You, the builder and the bank sign one document. The builder agrees that the bank has a claim on your flat for the loan, and that the loan money goes to the builder in stages. You agree to repay the bank. The bank agrees to disburse as construction moves.
Why it matters to you
This agreement decides who is paid what, and what happens if something goes wrong: if you cancel, if the builder delays, or if the bank stops disbursing. Some offers, often called subvention or “no EMI until possession” schemes, put part of the interest on the builder for a while. Those promises should appear in this agreement. If they are only in a brochure, they are hard to enforce.
What to read
- Who pays pre-EMI interest, and until when.
- What happens to money already paid if the booking is cancelled.
- Whether the builder must refund the bank directly in that case.
- That the sale deed, when registered, will be handed to the bank as security.
- Any limit on selling or transferring the flat before possession.
Read it alongside your agreement for sale. The two should tell the same story.
Read more on the blog
Related terms
See all glossary terms. This page explains a term; it is not legal or tax advice, and rupee figures are illustrative.
FAQ
Tripartite Agreement: common questions
Do I need a tripartite agreement for a ready flat?
Usually not. For a ready flat, the bank takes the registered sale deed as security directly.
Is the tripartite agreement registered?
Practice varies by bank and state. Ask your bank whether it will be registered or stamped, and keep a signed copy.
What is a subvention scheme?
An arrangement where the builder pays some or all of the interest for a set period. Get the terms written into the tripartite agreement.
Can I switch banks later?
Often yes, through a balance transfer, but a new tripartite agreement may be needed while the flat is under construction.
Want someone to walk you through it?
Ask the Reeva team about this, or anything else on your first-home paperwork. We will call back, with no pressure to buy.