estoppel certificate

Definition

A document signed by a tenant confirming the terms of their lease and that they have no disputes with the landlord, essentially a truth oath for real estate transactions. Lenders and buyers demand these to prevent tenants from later claiming secret side deals.

Example Usage

The commercial tenant dragged their feet for weeks before finally signing the estoppel certificate required for closing.

Origin

From the legal doctrine of 'estoppel,' preventing someone from contradicting previously established facts

Fun Fact

Tenants who refuse to sign estoppel certificates can tank entire property sales, giving them unexpected leverage over their landlords.

Source: Commercial real estate legal terminology

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