Kagaznama

Tripartite Agreement Between Buyer, Seller and Bank

At a glance

Price: Free
Stamp duty: Chargeable as an agreement not otherwise provided for (Art.5, Sch.I-A, Punjab/Chandigarh) — doesn't re-stamp the principal agreement.
Registration: Not registrable merely for earnest money.
Witnesses: Two witnesses are recommended as execution evidence for substantial agreements; doesn’t replace mandatory registration.

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Also called

buyer seller bank tripartite agreement
property loan tripartite
sale financing tripartite

When you need it

For when the buyer is loan-financed and the lender must coordinate disbursement with the seller — especially where part of the loan pays off the seller's mortgage, or documents go straight into the bank's custody. Identifies consideration, buyer margin, sanctioned loan, disbursement route, payoff, custody, and funding failure — limiting the bank to its own security obligations, not a title guarantor (TP Act s.54).

Without it, seller and bank can deadlock over who moves first.

Whether you can fill this in here

You can fill this in here

You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

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See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

Chargeable as an agreement not otherwise provided for (Art.5, Sch.I-A, Punjab/Chandigarh) — doesn't re-stamp the principal agreement. Raising earnest money under a 5%-duty Chandigarh Item-22 agreement: check the increase's duty with the Sub-Registrar; giving the buyer possession: the Collector may treat it as a conveyance. Stamp at signing (s.17) — unstamped, inadmissible until duty+penalty paid (s.35).

Registration

Not registrable merely for earnest money. But a s.53A (TP Act) contract to transfer for consideration IS compulsory under Registration Act s.17(1A); RERA s.13 may also apply.

Notarisation

Doesn't substitute for compulsory registration or create enforceability where none exists.

Witnesses

Two witnesses are recommended as execution evidence for substantial agreements; doesn’t replace mandatory registration.

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Sample preview — placeholder answers, not your data

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TRIPARTITE AGREEMENT BETWEEN BUYER, SELLER AND BANK

1. TRANSACTION

On 1 April 2026, Harpreet Singh, Aarav Sharma and HDFC Bank Limited, of Sector 17, Chandigarh, record financing arrangements for House 52, Sector 8, Chandigarh under Agreement to Sell dated 01 August 2026.

Loan/application reference: HL-CHD-2026-88421. Sale consideration: ₹2,50,00,000 (Rupees Two Crore Fifty Lakh only). Buyer own contribution: ₹1,00,00,000 (Rupees One Crore only). Sanctioned/expected loan: ₹1,50,00,000 (Rupees One Crore Fifty Lakh only).

2. DISBURSEMENT

Disbursement route: Directly to seller against completion documents. Conditions: Registered conveyance/mortgage documents, seller title originals, loan closure statement and buyer margin contribution..

Existing mortgage: Property is free from lender mortgage at disbursement.

3. TITLE DOCUMENTS AND SECURITY

Title custody: Financing lender as mortgage security.

4. PAYMENT AND FAILURE OF FUNDING

Seller payment/discharge: Only when cleared funds reach seller/existing lender according to the agreed disbursement route. Failed disbursement: Buyer remains responsible for completing payment unless agreement conditions provide a financing exit.

5. BANK ROLE

Bank obligations are limited to its sanction/security documents and stated disbursement undertaking. 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.

Questions about this document

Does the Tripartite Agreement Between Buyer, Seller and Bank need stamp paper or stamp duty in Punjab and Chandigarh?

Chargeable as an agreement not otherwise provided for (Art.5, Sch.I-A, Punjab/Chandigarh) — doesn't re-stamp the principal agreement.

See the full position on stamp duty, registration and witnesses

Does the Tripartite Agreement Between Buyer, Seller and Bank need registration in Punjab and Chandigarh?

Not registrable merely for earnest money.

See the full position on stamp duty, registration and witnesses

What does the Tripartite Agreement Between Buyer, Seller and Bank cost on Kagaznama?

Free.

Documents are free. Only kits are paid.

Does the Tripartite Agreement Between Buyer, Seller and Bank need witnesses?

Two witnesses are recommended as execution evidence for substantial agreements; doesn’t replace mandatory registration.

See the full position on stamp duty, registration and witnesses

Often needed with this document

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