Definition of Tri-party agreement:
Alternative term for buy and sell agreement.
A tri-party agreement is a business deal between three separate parties. In the mortgage industry, a tri-party or tripartite agreement often takes place during the construction phase of a new home or condominium complex, to secure so-called bridge loans for the construction itself. In such cases, the loan contract involves the buyer, the lender, and the builder.
Tri-party agreements spell out the various securities and contingencies between the three parties in the event of default.
How to use Tri-party agreement in a sentence?
- With mortgages, the tri-party, or tripartite, agreement, usually happens during the construction phase of a property to secure bridge loans.
- In tripartite, the three parties are the buyer (or borrower of the loan), the lender and the company building the property.
- A tri-party agreement is a deal between three parties. The term can apply to any deal but is commonly used in the mortgage market.
Meaning of Tri-party agreement & Tri-party agreement Definition