It confirms that the shareholder owns the shares and owns the property lease. It confirms the co-operative`s agreement for the lender to grant a loan to the shareholder in exchange for a right of guarantee on the shareholder`s lease and the shares as collateral. The Aztecs will arrive signed by the bank. You sign and submit them with your request for cooperation and, finally, a member of the board of directors will sign, the agreement being executed in its entirety. It prevents the co-op from accepting further charges on collateral without the lender`s consent. This means that no credit, subletting, termination or waiver of the lease will be granted without the lender`s consent. An «Aztech Recognition Agreement» or «Aztec» is an agreement between you, your lender and koop, and determines what happens when you stop paying for maintenance and/or mortgages. It is necessary to finance the acquisition of a co-op. While you`re signing the Aztecs, this is really just confirmation. It doesn`t require you to do anything wrong. The name of the form is a bit strange, but comes from the company that standardized the document in the 1970s. Prior to its creation, a lender had to negotiate individually with each co-op, which was extremely inefficient.

Before developing and using Aztech`s recognition agreement today, lenders would negotiate directly with developers and co-op converters to create customized documents that would allow financing for individual shareholders. This is a three-way contract entered into by the bank (usually an «Aztec» recognition agreement is required) with the board of directors, the credit bank and the purchaser who formalizes the relationship between the lending bank and the cooperative. In this document, the co-op acknowledges the relationship and agrees to notify the lender if the shareholder refrains from paying maintenance or other costs to the co-op in a timely manner. Your lender will send the Aztech recognition agreement, so it`s only for information purposes, but you can find a sample here. Please remember that this is not necessarily what you will see. In addition to the above information, the recognition agreement also lays the groundwork for the lender`s opinion if the shareholder attempts to sublet the unit, refinance the loan, take over additional financing or sell the unit. The lender must inform and unsubscribe on all these issues before the co-op can proceed with the authorization. Hello, this is my first time applying for a co-op apartment, and I need a guide. Over the past three months, I have completed the contracting process, and after the contract was signed, I filed the application with Koop`s Board of Directors. The recognition agreement was not specifically requested in the application file, but was requested after the package was sent.

It was signed by myself and the lender, and I certified a cheque for $400, as I did for the recognition agreement. The process to get the recognition agreements took more than two weeks after I already filled out the package. I am told that I am rejected by my real estate agent, even though I have not received a response from the council.