Property sale – trouble free with tripartite agreement
The “vendor takeover” process should protect the interest of all the parties involved and also should satisfies the objectives between the three entities namely property owner, builder, new buyer.
What is vendor take over?
People are in need of selling their half constructed home in need to buy new homes and also due to outstanding loans they availed. Even they are ready to sell their new owned home which are just bought within 2 years. The process of selling these types of property is more complicated. This process can be made simple with the help of vendor takeover method.
How the process works?
The people involved in the process are home owner, homeowner’s lender, builder, new buyer and new buyer’s lender. It should fulfill the objective of the people who are all concerned. The process should be proceeding with strict and disciplined legally. The developer has to ensure the paid back amount to the home owner’s lender. When the buyer and seller are having their point clear, the home owner lender can get full settlement also with full interest of the home owner’s existing mortgage. In other side the new buyer gets full responsibility on the property which encloses the financial interests also and has only relationship with their lenders (new buyer’s lender).
The initial step of the process is that the three entities should sign the tripartite agreement. The agreement should be certified legally and ensures the protection of three entities interests. The process also provides the details and responsibility of each other and should get approval from all the entities to put forth with the transaction.
If the agreement confirms to proceed, the old owner can get full payment from the new buyer and also disburse the payment after clearing all dues of his existing lender. Then he old owner can collect all no dues and loan closure forms and also all documents are handed over to the new buyer.
Complication involved
Even though the process made simple, there are more impediment involved here. Some banks are not show interest to encourage this type of process. So, new buyer should be aware of these issues before take over the agreements.
Article source: Financial Express
