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. In rare cases, banks will ask Koop to accept an amended version of the Aztech agreement. In this case, the lawyer may accept minor changes, but counsel will probably not agree to eliminate any provision protecting the koop if it fails to notify the bank/lender of a shareholder`s default. The bank/lender generally requires that the agreement be signed when the shareholder needs financing. Since the agreement allows banks/lenders to pay maintenance costs if the shareholder does not, this is advantageous for the co-op.
This is essentially an insurance policy for maintenance, as lenders want to ensure that their guarantees (co-op shares) are as clear as possible. On the other hand, when a shareholder is late in his monthly support, it is usually enough to send a copy of the healing notification to the bank/lender of the shareholder to be aware of his support payments. Many shareholders are afraid of making their loans insolvent. 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. This means that, without the lender`s agreement, the co-op cannot accept other loans, terminations or donations of the own lease. 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. 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.