Tenant Estoppel Certificate Law and Legal Definition
A tenant estoppel certificate is used to verify the current status of the tenant and landlord’s rights and obligations under an existing lease when a landlord is seeking a loan on the leased property. The estoppel certificate identifies the tenant and landlord; the leased property location; the lease commencement date, termination date and option period, if any; the status of rent, prepaid rents and security deposits; status of any defaults by the landlord, among other information. It usually contains a statement by the borrower indicating the amount owed on their mortgage loan along with the interest rate.
An estoppel certificate is typically used when the owner of a commercial property wants to sell or refinance the property, and the buyer or lender requires confirmation of the status of all leases in the property, to ensure that the tenant(s) do not have any claims against the landlord which would allow the tenants to offset or withhold future rent payments.
