TRIPARTITE AGREEMENT BETWEEN BUYER, SELLER AND BANK
- TRANSACTION
On __________, __________, __________ and __________, of __________, record financing arrangements for __________ under __________.
Loan/application reference: __________. Sale consideration: __________. Buyer own contribution: __________. Sanctioned/expected loan: __________.
- DISBURSEMENT
Disbursement route: __________. Conditions: __________.
Existing mortgage: __________.
- TITLE DOCUMENTS AND SECURITY
Title custody: __________.
- PAYMENT AND FAILURE OF FUNDING
Seller payment/discharge: __________. Failed disbursement: __________.
- BANK ROLE
__________. This tripartite agreement coordinates money and documents; it does not make the bank the seller, buyer or guarantor of title.
Section 54 of the Transfer of Property Act, 1882 treats a contract for sale as an agreement that a sale will take place on settled terms; the contract does not by itself create an interest in or charge on the property. The final transfer of ownership must occur through the legally required conveyance/registered instrument.
2A. BUYER MARGIN BEFORE DISBURSEMENT
The lender may require the buyer to contribute its own margin before or proportionately with loan disbursement. The buyer should provide evidence of margin payment where the sanction requires it. The seller should not treat a sanction letter as equivalent to cleared funds; payment occurs only through the agreed disbursement route.
2B. CLOSURE OF SELLER MORTGAGE
Where the seller’s property is already mortgaged, the payoff amount should come from a current lender statement and the release process should be coordinated so the old lender receives the amount necessary to release originals/charge. Any surplus loan disbursement goes to the seller only after the agreed closure sequence. The buyer should not pay the seller directly an amount earmarked for charge release unless the financing structure safely permits it.
3A. ORIGINAL DOCUMENT MOVEMENT
Original title documents may move from the seller’s existing lender to the buyer’s lender without ever being physically handed to the buyer. The parties should keep a document list and acknowledgment at each stage. The tripartite arrangement should not state that the seller delivered originals to the buyer if the bank-to-bank process was different.
4A. SANCTION IS NOT UNCONDITIONAL FUNDING
A loan sanction normally contains borrower, property, valuation, legal and documentation conditions. The bank’s participation in this agreement should not be read as waiver of those sanction conditions unless the bank expressly says so. If the loan ultimately does not disburse, the buyer-seller rights follow the sale agreement and any financing contingency, not an assumed bank guarantee.
5A. REGISTRATION DAY SEQUENCE
The parties should agree the practical sequence for signatures, bank drafts/RTGS, old-loan payoff, registration presentation, registered-document receipt and possession. The bank may release funds only at a particular step. A written sequence reduces the risk that the seller executes without assured payment or that the buyer/lender pays while required conveyance documents remain incomplete.
PERSONAL DATA NOTICE
This notice is given under the Digital Personal Data Protection Act, 2023. Personal data in this document is collected only to coordinate the buyer financing, seller payment, existing-loan closure and title-document custody for the property sale, communicate about that purpose, verify expressly supplied transaction information, and retain an evidentiary record.
The record will be held by __________ and may be shown only to the buyer, seller, authorised broker/property consultant, advocate, lender, escrow agent, valuer, registration/revenue authority, promoter/association, tax professional or other person directly involved in the stated transaction and due-diligence process.
If the proposed transaction does not proceed, the personal data will be retained for 90 days from the final cancellation/withdrawal decision and then erased, except for records needed for a live dispute or a named statutory retention duty. If the transaction proceeds, the record will be retained for the transaction period plus 12 months and then erased unless a longer statutory period applies.
A person named in this document may withdraw consent for future consent-based processing, request correction or erasure when the stated purpose has ended, or raise a grievance by writing to __________. The record-holder should acknowledge and respond within 30 days.
Data minimisation: this document does not require full Aadhaar numbers, Aadhaar copies, passwords or bank credentials. Identity and tax documents should be collected only through the dedicated KYC/tax workflow where necessary.
Personal-data instruction: __________.
EXECUTION
Seller: __________
Seller address: __________
Buyer: __________
Buyer address: __________
Bank: __________
Record-holder: __________
Seller contact:
Buyer contact: