What Alexandra said. Tenant estoppels are common when transferring a property subject to existing leases. They reaffirm that a lease is in place, and all parties affirm that it is in force.

Nathan,

In our experience it was a letter or certificate.  The terminology varies. When a property is sold that has leases in place (office building, retail center), the leasee is acknowledging that the lease they have with the present owner is the only agreement they have with the present owner of the building, and that there are NO other side agreements that may affect the property .  A

We use estoppel letters (tenant estoppel certificate) on commercial transactions, where the properties are tenant occupied.  

Basically the tenant confirms their monthly rent amount, when the next payment if due, the amount of their security deposit, when their lease expires, do they have the option to renew the lease.

In my area, an estoppel letter is a piece of document that tells the closing attorney what fees are due to the HOA at closing.

     HOA Estoppel letters are a big racket in Florida.   Sellers or buyers get charged $450+ for these at Closing.

   Florida Statutes 720.30851 > Estoppel Certificates

Info for the buyer regarding the tenants.

It can be used in leasing or mortgage negotiations. The document establishes facts - for example regarding current agreements in place between a landlord and tenant. 

Fred Griffin beat me to it LOL

In our area, they are not commonly called Estoppel Letters but, the attorneys require them for HOA pay-off, assessment info and other HOA certification that is required by NC or SC (as required by the lenders). 

They are also required when a home is sold that is currently leased and transferring ownership. 

If you don't know, you can find out here! (warning, I'm promoting Nathan's post) What is an estoppel certificate -Kasey

Your blog post explained it nicely for the purposes of investment properties and property management.

Not being a commercial agent I would accept Ron and Alexandra Seigel explanation but would check with state laws in your state

Thanks for sharing.

On my broker exam

Nathan: Are you in Utah?

It's a letter saying the seller is up to date on all payments and responsibilities to the homeowner or condo association and is not encumbered in any way from selling the property.

Nathan Gesner - learned about it for the license exam and.... now I know! Thanks for the question.

Something tells me you know what this is. Are you trying to do some teaching to the Utah students, Nathan?

Ron and Alexandra Seigel have the right answer to your question!

Nathan Gesner Candice A. Donofrio and Richard Weeks have answers for commercial leasing.

What Ron and Alexandra Seigel said.

There could be many applications.

An estoppel certificate is a document used in mortgage negotiations to establish facts and financial obligations, such as outstanding amounts due that can affect the settlement of a loan. It is required by a lender of a third party in a real estate transaction.

In CA it is a required disclosure where applicable: when the owner of a rental property (income property) provides the buyer with all the rental info: lease(s), rents, sec. deposits, etc.

For some HOAs and management companies it is a profit opportunity at $250 a pop, then what everyone else said.