Estoppel Certificate

Category: legal

A legal document signed by a tenant verifying the current terms and status of their lease.

Estoppels are the "truth checks" during a property sale. When someone buys a building, they make every tenant sign an Estoppel saying, "Yes, my rent is $5k, and no, the landlord doesn't owe me money." It prevents tenants from making up secret deals after the building changes hands.

Common Examples

• During the due diligence period, the buyer required an estoppel certificate from every commercial tenant in the business park.
• The tenant delayed signing the estoppel certificate until the landlord fixed the long-standing leak in the warehouse roof.