2007-01-10 03:52:01 · 1 answers · asked by darryl h 3 in Business & Finance ➔ Renting & Real Estate
A Collateral Warranty is an agreement between a consultant or contractor involved in the design and/or construction of a development and a third party, the beneficiary, who acquires an interest in that development. The beneficiary may be a purchaser or tenant of all or a part of the development or a bank or other company providing finance for the development.
The purpose of a Collateral Warranty agreement is to create a contractual link between the beneficiary and the consultant or contractor involved in its design and construction. By having a collateral agreement between the designer or builder and the end-user, the beneficiary can sue the designer or builder under the collateral agreement on the grounds that there has been a breach of contract.
Best Regards,
Jossi J Edwards
Omega Professional Realty, Inc.
404-427-0062
http://jossiedwards.point2homes.biz
2007-01-10 04:00:24 · answer #1 · answered by edwarjd 3 · 2⤊ 0⤋