A tripartite agreement is a legal document that involves three parties and outlines the rights and responsibilities of each party in relation to a particular transaction or project. In the context of a first mortgage loan for a small scale residential development, a tripartite agreement may be used to define the terms of the loan, the roles and obligations of the borrower, builder, and financier, and the terms of the construction and development project.

The borrower is the party that is seeking the loan and will be responsible for repaying the loan according to the terms agreed upon with the financier. The builder is the party that will be responsible for constructing the development project, and the financier is the party providing the loan.

The tripartite agreement may outline the terms of the loan, including the amount of the loan, the interest rate, the repayment schedule, and any fees or charges associated with the loan. It may also outline the roles and responsibilities of the borrower, builder, and financier in relation to the development project, including the timeline for construction, the budget for the project, and any performance or quality standards that must be met.

Tripartite agreements are commonly used in real estate transactions to ensure that all parties are aware of their obligations and to provide a clear framework for the project. It is important for all parties to fully understand the terms of the tripartite agreement before signing and to seek legal advice if necessary.

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