Legal

Estoppel Certificate

A binding document signed by a tenant confirming the current status and key terms of their lease, including rent amounts, security deposit held, lease expiration date, and whether either party is in default.

Extended Definition

Estoppel certificates provide binding proof to prospective buyers or lenders that a lease exists exactly as represented and that no hidden disputes exist. Because the tenant is legally prevented ("estopped") from later contradicting these statements, accuracy is critical. Commercial leases typically require tenants to sign and return estoppel certificates within 10 to 15 days of a request. Failure to comply can be treated as a material default, and some leases grant the landlord power of attorney to execute the certificate on the tenant's behalf.

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