1973 Aztech Recognition Agreement Form

Your lender will send the Aztech recognition agreement, so it`s only for informational purposes, but you can find an example of it. Please note that this does not necessarily look like what yours will look like. The agreement describes the legal procedure when the shareholder suspends their monthly alimony and/or mortgage payments. An Aztech is usually needed when you buy and finance co-op housing. If you bought a co-op in New York with a mortgage, you`ve heard about Aztech`s recognition agreement. People also call it “Aztec form”. In fact, the buyer who requests a co-op housing with a mortgage must present an Aztec. In fact, the Aztec has nothing to do with an ancient Mexican civilization. In fact, it is related to the purchase of a cooperative in New York. We will decipher it for you and explain what it means and how it works.

To get a mortgage, the bank needs Aztech. The co-op purchase app requires the originals. Interestingly, most co-op owners and sometimes brokers don`t know what this means. In fact, they simply put it in the Coop board package without understanding the impact. An “Aztech Recognition Agreement” or “Aztec Form” is a trilateral legal agreement between the shareholder, the lender and the cooperative cooperation. The name of the form comes from the company that standardized the agreement in the 1970s. Before establishing a standard form, banks/lenders had to negotiate individually with each cooperative. The objective of the agreement remains to protect the cooperative in the event of non-payment. Any potential buyer who wants to buy a co-op in New York is buying shares in the company. If you buy with a mortgage, the Aztec is required. The document explains that when it comes to payment, cooperatives have priority over the bank. If the buyer is late in his mortgage, there is no modification of the lease without first notifying the bank.

The form describes what to do in the event of a borrower defaulting. In fact, it works as a system of alerting to a borrower`s financial difficulties. The bank undertakes to make payments on behalf of the defaulting shareholder in order to prevent the forced execution of the cooperative. The main advantage of an Aztech agreement is that it allows buyers to buy cooperative housing with financing that improves real estate values for the benefit of all shareholders. As a bonus, it allows the lender to monitor the punctuality of the shareholder`s alimony. Makes the lender the guarantor of a shareholder`s maintenance costs. The bank/lender usually requires the agreement to be signed when the shareholder needs financing. The agreement allowing banks/lenders to pay maintenance costs if the shareholder does not do so is an advantage for the cooperative. This is essentially an insurance policy for maintenance, as lenders want to make sure that their collateral (the co-op shares) is as clear as possible. On the other hand, when a shareholder is in arrears with their monthly maintenance payment, sending a copy of the healing notice to the shareholder`s bank/lender is usually all the shareholder needs to be informed of their alimony…