top of page

What is an Estoppel Certificate?

It is a document often used in due diligence in Real estate and mortgage activities It is a document often completed, but at least signed, by a tenant used in their landlord's proposed transaction with a third party.

A mortgage lender intending to collateralize a tenant-occupied property or a purchaser intending to purchase such property will often want to verify certain representations made by the landlord.

An estoppel certificate provides confirmation by the tenant of the terms of the rental agreement, such as the amount of rent, the amount of security deposit, and the expiration of the agreement.

Further, the estoppel certificate may give the opportunity to the tenant to explain if they may have any claims against the landlord, which may affect a buyer's or lender's decision to complete the proposed transaction.

If the language in the lease so provides, a tenant can be in default under a lease after failing to comply with a request from the landlord for an estoppel certificate. The majority of commercial leases include a provision establishing the requirements for the provision of a tenant estoppel certificate following the landlord's request.

Our own Offer to Purchase - Investment Property contains an Estoppel certificate ready to be filled out and sign off by the tenant(s).

3 views0 comments

Recent Posts

See All
bottom of page