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deepak ingale   14 February 2021

Confirming party in tri party agreement

Hi Experts, Individual wants to purchase a flat. This flat was allotted to the land owner by the builder against the land what land owner has given to the builder for the development of the building.

Land owner has the allotment letter of the flat. There would be a tri party agreement between Builder as seller as party one, Individual as purchaser as party two and land owner as confirming party or party three.

Here, land owner wants to receive the entire sale amount of the transaction since he was allotted the flat. Builder has no objection for making this payment directly towards landlord as confirming party. This will be added as clause in the sale deed agreement.

Now question is, can bank make the payment towards land owner who is as confirming party in this tri party agreement? If yes, do we need to add any more clauses in the agreement so that there are no future recursion for any party ?B



Learning

 3 Replies

P. Venu (Advocate)     14 February 2021

In this context, what matters is the policy of the Bank.

1 Like

Dr J C Vashista (Advocate)     14 February 2021

It is better to seek professional services of a local prudent lawyer for proper advise and necessary proceeding.

1 Like

deepak ingale   15 February 2021

Thank you for response sir, 

Bank is fine to make payment towards confirming party provided we add a clause of builder as seller has no objection towards it.

 


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