Aztech recognition agreements are usually one of the last outstanding points for your co-op application, as they are sent towards the end of the credit subscription. If we say “sent,” we think so – your lender will physically send you three copies. Unlike virtually any other document in 2019, the Aztecs still have to be original copies (so don`t lose them!). Said, it`s an agreement that protects both the lender and the koop. If you want to buy a co-op apartment, you do so by buying shares in the company. If you do this through mortgage financing, one of these documents will be required. The document states that the right to pledge the co-op takes precedence over banks. If the buyer is late in his payments, there will be no change in the lease without the bank having previously reported it. The term comes from the company that makes the forms Aztech Document Systems aka and sometimes writes Aztec document systems. The correct name of the document is the recognition agreement.
Just as a standard leasing is often called Blumberg leasing, because Blumberg makes it the form. The main advantage of Aztech`s recognition contracts is that they allow buyers to finance in co-ops. If you buy a co-op, you technically buy shares of the building and the owner lease to live in a particular unit. This is against a condo where you buy the apartment proper. From a legal point of view, koops is a personal property (shares and leasing), while condominiums are real estate (the real good). For this reason, a mortgage in a co-op is effectively guaranteed by shares and property rental. The agreement recognizes that the shareholder is the owner of the shares and occupants of the apartment in accordance with the property lease. In the agreement, the co-operative agrees that the bank/lender lends money to the shareholder in exchange for a pawn on the shareholder`s lease and collateral units.
The agreement prevents Koop`s board of directors and cooperation from accepting other koop charges without the bank/lender`s approval.