Who pays the bank back?
In a tripartite agreement where the bank providing the home loan is a third party. And the bank pays an advance amount to the seller. After the termination of the contract in accordance with the provisions of the contract given, who pays the Bank back? Is the seller responsible for returning the advance amount to the bank, or is the Buyer liable to do so?
Country
  • India
  • United States
  • United Kingdom
Fields:
  • Commercial and Business Law
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sanama
Lawyer
posted 6 months ago
If a Bank pays the seller of a home an advance amount for the acquisition of the home by the purchaser and the contract as between the buyer and the seller does not come to fruition and the agreement of purchase and sale therefore is cancelled all amounts paid by the bank ostensibly on behalf of the buyer travels back to the bank and it is the seller's responsibility to do so less he is liable under the tort of unjust enrichment.
asadullah
Lawyer
posted 6 months ago
Seller is responsible to refund the amount because of contact termination
contractormehernaz0
Lawyer
posted 6 months ago
Tripartite agreement consists of three parties: the buyer, the seller and the financial institution. The bank will provide financial assistance to the buyer for buying the property. It is the responsibility of the seller to return the money paid by the bank. In case, the seller fails to return the amount to the bank, then the bank will be become the owner of the property.
nimit2010
Lawyer
posted 6 months ago
Hi It all depends upon the terms and condition of the agreement. If it specifically provide for the manner of refund after termination of the agreement, the same needs to be followed. Generally other than the strict terms of the agreement, the loan has to be paid back by the borrower as per the loan agreement as the seller is perhaps not the party to the loan agreement. Again, commercial matters are to be dealt strictly in accordance with the terms and conditions agreed in the agreement.