buy and sell agreement

Definitions (2)
Popular Terms
1. Mortgage lending: Three-way contract between a property buyer and two lenders: a construction lender, and a mortgage lender. Under its provisions, the construction lender extends a short-term loan to the buyer of a property to finance its construction, and holds the property as a collateral. When the construction is complete, the mortgage lender pays off the loan, takes over the lien on the property, and allows the buyer to repay the amount in monthly installments over a long term (usually 20 years). Also called tri-party agreement.
2. Partnerships: Alternative term for cross purchase agreement.


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