A tenant estoppel certificate is a certification by a tenant to a third party, such as a potential buyer or a lender, of the terms and status of the tenant's lease, states LandlordStation.com. The estoppel certificate is for the benefit of the third party considering a transaction with the property.Continue Reading
A tenant may be asked to sign an estoppel certificate by a landlord who is looking to sell or refinance a property because the buyer or lender needs to know the status of any contracts encumbering the property in question, states LandlordStation.com. The third party is seeking a complete and accurate picture of the property, including all leases or other obligations in place. A third party may also want to know whether the landlord tenant relationships are in good standing or if there are any unresolved issues.
Tenants are generally required to certify that the estoppel certificate contains true statements the third party may rely upon, according to The Law Office of Stuart Heller. This means that stating untrue information could make a tenant legally liable to the third party. Accordingly, tenants should be cautious to only verify information they know to be true, or to clearly state that the information provided is to the best of their knowledge.Learn more about Law