Tri-Party Agreement Example
These agreements usually stipulate that if the owner/borrower violates the non-payment clause of the loan agreement, the mortgage lender/lender becomes the new owner of the property. In addition, tenants will then have to accept the mortgage/lender as the new owner. The agreement also prevents the new landlord from changing the tenants` clauses or provisions,” Bulchandani adds. For example, to ensure timely planning of work and quality transformation, the borrower does not wish to pay the client until the work is completed. But the client may not be paid once the work is completed, while he himself owes money to subcontractors such as plumbers and electricians. In this case, a developer may assert what is known as a construction deposit right on the property; That is, the right to forfeiture if they are not paid. In the meantime, the bank also maintains a right to the property if the borrower is late in the credit. . . .
