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How to Obtain an Estoppel Certificate (4 steps) Meet with the Tenant. Obtain the Original Lease. Make Copies of Last Three Months' Rent. Get the Estoppel Notarized.
An estoppel certificate is used during mortgage negotiations to determine precise facts, such as the outstanding balance due on a loan, which might affect the loan.
An estoppel certificate is typically requested when the owner of a multifamily property is either selling or refinancing the property. It's an important piece of a buyer or lender's due diligence. A property owner may be required to request an estoppel certificate from their tenants when they're selling the property.
An example is if a landlord verbally agreed to let a tenant keep a pet on the rental property, the tenant should include that detail in the estoppel certificate so that the buyer is aware of this privilege.
An estoppel certificate is a legally binding document whereby a tenant represents or promises certain things regarding its lease or rental agreement to be true.