{"id":17383,"date":"2023-06-09T15:00:00","date_gmt":"2023-06-09T19:00:00","guid":{"rendered":"https:\/\/www.renthop.com\/content-manager\/?p=17383"},"modified":"2024-10-22T15:00:13","modified_gmt":"2024-10-22T19:00:13","slug":"what-is-an-estoppel-certificate","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/blog\/what-is-an-estoppel-certificate\/","title":{"rendered":"What is an Estoppel Certificate?\u00a0"},"content":{"rendered":"\r\n
If you\u2019ve just checked your mail and received an estoppel certificate, it may seem convoluted and confusing. It can be tempting to recycle the certificate or simply sign it without knowing the full conditions of the agreement. Yet estoppel certificates are important legal documents that should be reviewed carefully. When disregarded, risks can emerge for you, your landlord, or a prospective buyer of the building you are renting in. It\u2019s important to know what an estoppel certificate is, if you need to sign it, and how to protect your rights as a tenant.<\/p>\r\n\r\n\r\n\r\n
An estoppel certificate is a legal document signed by a tenant that confirms the current terms of a lease<\/a>. The Black Law<\/a> Dictionary defines it as a \u201cwritten, signed stipulation of previously established facts preventing subsequent contradiction or recant of these facts.\u201d This certificate is most commonly used when the building is being sold or refinanced. It works to protect both the tenant and buyer of a property. The buyer or lender will perform due diligence and ensure that the tenants of the building are in good standing. They need to make sure there are no unwritten agreements between the tenants and landlord regarding rent, amenities, or access.<\/p>\r\n The estoppel certificate has multiple functions. It can clarify and confirm if the rent has been fully paid by the tenant or if the tenant has any claims against the landlord. It can also outline unwritten agreements between tenants and the landlord to ensure that these arrangements are respected in the future. In some cases, estoppel certificates can also be required if you are subletting your apartment.<\/p>\r\n Common things included<\/a> in an estoppel certificate are:<\/p>\r\n\r\n\r\n\r\n If you have access to storage, pet allowance, parking, or any other amenity not included in the lease, it should be included in the estoppel certificate. This will make sure your arrangement remains in effect.<\/p>\r\n\r\n\r\n\r\n There are a few types of properties<\/a> where estoppel certificates can be useful or required.<\/p>\r\n\r\n\r\n\r\n The estoppel certificate protects the tenant, the landlord, and the potential buyer of the rental property. A buyer needs to confirm the leases are in full effect and in good standing before their purchase. This will protect them from financial harm. If there are outstanding payments on a lease, the buyer needs to be made aware. The estoppel certificate can also clarify any timelines for extending or renewing a lease. If there are any discrepancies regarding the amount of rent, the certificate can also protect the new buyer from being placed at financial risk. For example, if the building changes ownership (without the signing of an estoppel certificate), a tenant could claim to only be paying $1000 in rent when the lease says they pay $1275, financially misleading the new buyer.<\/p>\r\n\r\n\r\n\r\n On the converse, tenants are also protected by estoppel certificates, especially when they have agreements with the landlord that aren\u2019t outlined in the lease. For example, if the landlord had promised to make repairs to the apartment, the new buyer should be made aware of this so that they can follow through on the repair or negotiate the terms of the agreement. If you have a lease that doesn\u2019t allow for pets, but you have an arrangement with your landlord that allows for your pet, this should be included in the certificate to ensure you can keep your pet if the building changes ownership.<\/p>\r\n\r\n\r\n\r\n There may be a small window<\/a> of time for you to complete the estoppel certificate. Though time is of the essence, you shouldn\u2019t sign the estoppel certificate before considering a few things. You should review your lease to check if there is a provision mandating you to sign an estoppel certificate. If you are mandated, check to see what time frame you are required to sign it and send it back. Even if there is no clause in the lease about signing the certificate, check local and state laws to see if you are mandated to sign the certificate. It is imperative that you sign if you are required by local or state law. Tenants who don\u2019t sign the certificate in a timely manner are violating their lease and can face eviction.<\/p>\r\n\r\n\r\n\r\n You should still consider the benefits of signing regardless to ensure your rights are protected even if you aren’t mandated. If you choose to sign the estoppel certificate, you should carefully compare the certificate and your lease to ensure the estoppel certificate reflects all the aspects of your living situation. There may be differences between what is written in the lease and the agreement you currently have with your landlord. This can be anything from a price difference in rent to your usage of a storage space or elevator.<\/p>\r\n Hold off on signing the estoppel certificate and mark any inconsistencies between your lease and the certificate and speak to your landlord about it. It\u2019s essential to make sure that any written or verbal agreements are accurately depicted in the estoppel agreement. This will ensure that your rights as a tenant are protected once the building changes ownership. You may need to consult<\/a> a real estate lawyer if there is a disagreement about the inconsistencies. Once all inconsistencies are addressed, then you can sign. Just note that once signed, the estoppel certificate becomes a legally binding agreement which can be used in court as evidence should any disputes arise.\u00a0<\/p>\r\n Your landlord may reserve the right to sign the estoppel certificate on your behalf as your representative. For most landlords, refusing or forgetting to sign the certificate means that you’ve forfeit your right to review and are by default confirming that the information in the estoppel certificate is all accurate. Therefore, it’s best to review the estoppel certificate then sign once you know everything in it is accurate.\u00a0 \u00a0<\/p>\r\n\r\n\r\n\r\n Though estoppel certificates may seem like a headache, they are an important legal document to protect all parties involved. Signing the estoppel certificate will not place you at any risk as long as the certificate and the terms of your lease match. You should ensure that your unwritten agreements are honored in the certificate if there is a mismatch.<\/p>\r\n\r\n\r\n\r\n Not signing the document when you are obligated to could result in your eviction in a worst case scenario. You could be at risk if an unwritten agreement is left out of the estoppel certificate. For example, you don\u2019t want to end up in a position where you have to give up a pet because the original lease did not allow for pets. Likewise, the buyer of the building doesn\u2019t want to purchase the property without understanding the terms of the leases. It\u2019s important for everyone to be on the same page so as not to cause any lasting problems. It is always a good idea to seek legal counsel to ensure the protection of your rights as a tenant.<\/p>\r\n","protected":false},"excerpt":{"rendered":" If you\u2019ve just checked your mail and received an estoppel certificate, it may seem convoluted and confusing. It can be tempting to recycle the certificate or simply sign it without knowing the full conditions of the agreement. Yet estoppel certificates are important legal documents that should be reviewed carefully. When disregarded, risks can emerge for […]<\/p>\n","protected":false},"author":3,"featured_media":17388,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[440],"tags":[],"class_list":{"0":"post-17383","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-rental-glossary"},"yoast_head":"\nWhat is the purpose of an estoppel certificate?<\/h2>\r\n\r\n\r\n\r\n
What does an estoppel certificate contain?\u00a0<\/h2>\r\n
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What kinds of properties require an estoppel certificate?<\/h2>\r\n\r\n\r\n\r\n
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Why is the estoppel certificate important?<\/h2>\r\n\r\n\r\n\r\n
What to do when you receive an estoppel certificate?<\/h2>\r\n\r\n\r\n\r\n
What if something is missing in the estoppel certificate?<\/h2>\r\n\r\n\r\n\r\n
What if I refuse or forget to sign the estoppel certificate?<\/h2>\r\n
Proceed with caution!<\/h2>\r\n\r\n\r\n\r\n