The document serves as a promise to lenders or potential buyers who support the lessor`s claims with respect to the lease agreement and rental income/cash flow. It protects the lender against future financial surprises, such as for example. B tenants, who refuse to pay the rent because the landlord has not made promised repairs. The lender will then be able to check the Estoppel certificate signed by the tenant to see if these necessary repairs have been mentioned. If this were not the case, the tenant would not have the right to withhold his rent. An Estoppel tenant certificate is a document used in real estate that confirms the details of the lease between a tenant and a landlord as well as the relationship between the two. It states that all the facts of the agreements are true and that both the tenant and the lessor are required to sign the certificate. He can also detail the tenant`s rights and works to give specific facts about the lease. It is a document that is usually needed by a lender before deciding to lend money to commercial and residential properties.
It must contain the following details: The Estoppel certificate protects owners, tenants and potential buyers. If someone is trying to buy real estate from your landlord, they will want to make sure there are no problems with the lease that could cost them later. For landlords, this protects them from the fact that a tenant makes a false claim that could cost the landlord, for example.B. if they claim to pay much lower rent than they actually pay. Once all the facts have been confirmed that the details of the rental are correct without having to be held by the lessor, the tenant must sign the Estoppel in the presence of a notary. The execution of the estoppel before a notary is extremely important, as it legitimizes that the tenant has actually authorized the form while demonstrating his identity with a government-issued identity card. In principle, tenants with an Estoppel certificate can refuse or confirm the information provided by the lessor to a lender or third-party buyer.. . .