An estoppel certificate is a document that is used to confirm certain facts or representations about a lease agreement or property. It is a legally binding document that is typically provided by the landlord or property owner to the tenant or prospective buyer.
The estoppel certificate is typically used to confirm the following information:
The terms and conditions of the lease agreement, including the expiration date, rent amount, and any other obligations of the tenant or landlord.
Any known defaults or breaches of the lease agreement by either party
Any outstanding amounts that are owed to the landlord or property owner
Any claims or disputes that have arisen under the lease agreement or with respect to the property
Any representations made by the landlord or property owner regarding the property.
The estoppel certificate is important because it provides assurance to the tenant or prospective buyer that the lease agreement or property is as represented and that there are no outstanding issues that need to be resolved. It also helps to prevent disputes and misunderstandings regarding the terms of the lease agreement or the condition of the property.
It is commonly used in commercial real estate, when prospective buyers and lenders may require to review the lease agreements, the estoppel certificate provides the necessary information that they need, it could be provided by the landlord or the tenant depending on the circumstances.