Information found in tenant estoppel letters vary but may include: beginning and ending dates ; if the lease is in force; if it has been modified; options available to the tenant; if the landlord or tenant is in default of terms of the lease, and the rate of rent. Because the estoppel certificate is designed to give a third party a clear picture of the terms and history of the lease, it should include as much information as possible.Continue Reading
An estoppel certificate is a certified claim of the terms and conditions a commercial real estate lease. Written by the tenant, the certificate is primarily used by interested third parties in real estate transactions. The certificate is a legal document and tenants certify that all information is inclusive and correct; therefore, the tenant should include as much information as possible in the letter.
Lease beginning and ending dates must be included on the estoppel certificate as well as whether rent has been paid for future dates. The certificate should state that all prior rents have been paid in full. Rent information should include minimum base and percentage rent rates as well as common area maintenance fees. Rent information should also include whether landlord has a security deposit for the property.
If the lease includes further options to extend the lease, this should be included in the estoppel. Whether the tenant has options to move into additional space in the landlord's buildings should be included. Any options for the tenant to buy the leased property should be included.The certificate should also state the tenant is physically occupying the property and is open for business.
Third party lenders may require the tenant include additional information in the estoppel certificate. Once the estoppel is certified, the tenant may not change its facts.Learn more about Real Estate