Tenant Estoppel Certificate Form | Commercial & Residential

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An estoppel certificate confirms the current details of a lease between the landlord and tenant. Both parties must sign the estoppel stating that all facts of the agreement are in fact correct and true. This is a requirement by lenders before loaning money for residential or commercial property.

Verifies the following:

  • Start and End Date;
  • Monthly Rent ($); and
  • Copies of the Last 3 Rent Payments. This is to verify to a third (3rd) party that the tenant is real as an estoppel certificate is commonly required by a lender before finalizing a loan to purchase or refinance.

Signing – It is required for most financial institutions to have this document be signed by the tenant in the presence of a Notary Public.

Table of Contents

Estoppel Certificate By Type

How to Obtain an Estoppel Certificate

In order to obtain an estoppel certificate, it is important to know all the facets of the lease to make it as easy as possible for the tenant to confirm the lease that is in place and have it signed in the presence of a notary public. Therefore, the agent or landlord should fill in the form and have the tenant view the document to confirm and sign.

Step 1 – Obtain the Original Lease

The landlord or agent that is facilitating the sale of the property will need to locate the signed original lease agreement to view the terms and conditions so that he or she can complete the estoppel. The following items will be needed for the estoppel:

  • Monthly Rent ($)
  • Expenses – Landlord and Tenant Responsibilities
  • Lease Term – Start and End Dates
  • Subletting – Does the Tenant have the Right to Sublet?
  • Security Deposit Amount ($)
  • Future Rent – Has the Tenant Pre-Paid any of their Rent? If so, this amount will need to be entered so that it can be deducted from the sale amount at the closing.

Step 2 – Verify the Tenant’s Behavior

Mark whether or not the tenant has ever been served with a notice to quit (also known as an eviction notice). If so, copies of the notice(s) will need to be attached to the estoppel along with the return receipt that was sent (if any).

Step 3 – Copies of Last 3 Months’ Rent

In order to prove the tenant is in fact paying rent, the landlord will need to gather checks or receipts, preferably, over the last three (3) months. This should be attached to the estoppel.

Step 4 – Get the Tenant Sign in Front of a Notary

Once all the facts have been confirmed that the lease details are correct, with no obligations needed to be fulfilled by the landlord, the tenant should sign the estoppel in the presence of a notary public. Executing the estoppel in front of a notary is extremely important as this legitimizes that the tenant did in fact authorize the form while proving their identity with government-issued identification.

If the estoppel is not notarized, there is no guarantee that the financial institution granting the mortgage on the property will finalize the documents in order to close on the property.

(Video) What is a Tenant Estoppel Certificate?

How to Write

1 – Gather Your References, Then Open The Estoppel Form

Obtain a copy of the Lease and any records pertaining to the Property and the Agreement. Once you have everything you need, open the form on this page (as an Adobe PDF, Microsoft Word (.docx), or Open Document Text (.0dt) file)  by clicking on one of the buttons below the image. Make sure you have compatible editing software for the file type you are selecting, if you wish to work onscreen.

2 – Identify The Parties Involved, The Concerned Property, And The Lease In Question

Before we begin, we will need to provide the Date this document is being prepared. This should be done using the three blank lines after the word “Date” at the top of the page. Enter the Two-Digit Calendar Day (1-31), the Month, and the Two-Digit Year on the first, second, and third spaces (respectively).The first statement of this form contains some necessary language for the purpose of this document. This will require some information to make it relevant to the situation at hand. First, indicate whether the Lease being discussed is a “Fixed Lease Agreement” by marking the first checkbox or if it is a “Month-to-Month Lease Agreement” by marking the second checkbox.Now, present the Physical Street Address of the Leased Property on the empty space following the words “…For The Property Located At.” This Address must consist of the Building Number, Street (Road, Ave., etc.) Name, and, if applicable, Unit Number where the Property can be Physically found.Next, we will continue the Physical Address by entering its City and State on the next two empty spaces.Now that we have defined the Leased Property, we should present the Parties involved. On the blank space following the word “…between,” enter the Full Name of the Landlord.On the blank space preceding the words “referred to as the Tenant(s),” supply the Full Name of the Tenant signing this form.

3 – Define Any Relevant Agreements

Article I will need the Tenant to indicate if the Lease has been modified or not. If it has not been Modified and is still in Effect (active), mark the first checkbox in this article.If the Lease is in Effect and has been modified, the Tenant must mark the second checkbox. If this definition is selected, the Date (DD/MONTH/YY) when the Modification went into effect must be reported utilizing the three blank spaces in this choice.The next item, Article II, will address the issue of subletting (when the Master Tenant rents part of or all the Property to a third party). The Tenant must mark the first checkbox if there is no Subletting involved. If the Leased Property is being sublet, the Tenant should mark the checkbox corresponding to the second statement. This choice will require some additional input. If some of the Leased Property is being sublet, then mark the checkbox preceding the words “…Part Of.” If the entire Property is being sublet, then mark the checkbox preceding the words “…All Of The Property.”

4 – Describe The Lease Agreement

The Third Article will begin an identification of the active Lease in question. If this is a Month-to-Month Lease Agreement, the Tenant should mark the first checkbox, then record the Date the Month-to-Month Lease Agreement commenced using the three spaces provided after the words “…began on the.” If this is a Fixed Lease Agreement, then mark the checkbox corresponding to the second statement. This statement will require the length of time the Lease is in effect recorded using the blank space before the word “Year(s)” and the blank space preceding the word “Month(s).” Following this, the Calendar Date when this Lease terminates should be entered utilizing the next three blank spaces.

The next article (“IV. Monthly Rent”) should have the Monthly Rent Amount the Tenant must pay (according to the Lease) reported on the blank line preceding the words “per month.”

If the Tenant does not have to pay any additional fees or expenses (in addition to the Monthly Rent) then mark the checkbox just before the words “…Does Not Pay.” If the Tenant must pay additional fees or expenses (as per the Lease and in addition to the Monthly Rent), then mark the checkbox preceding the word “pays” and enter the Dollar Amount along with the definition to this Expense on the next two blank spaces.

In Article V, enter the Calendar Day, Month, and Year when the last Rent Payment was made.

If the Tenant has not paid any Rent in advance, then mark the first statement in Article VI.

If the Tenant has paid Future Rent in advance then mark the second statement and enter the Amount that has been paid in advance on the first blank space and the last Rent Payment Date the future Payment can be applied to.

Article VII will need the amount the Tenant surrendered to the Landlord, to satisfy the Security Deposit required by the Lease, entered onto the blank space immediately after the dollar sign.

5 – Discuss The Status Of Provisions That Must Be Addressed Here

Next, in Article VIII, mark the first statement if none of the Landlord’s Personal Property is on the Leased Property.

If the Landlord does have Personal Property on the Leased Property (and in the Tenant’s possession) then, mark the second statement and define what the Landlord’s Personal Property is on the blank line provided.

Article IX will indicate if the Tenant will have the opportunity and right to Purchase the Leased Property as per the Lease being discussed. If not, mark the first statement in Article IX. If so, then mark the second statement and define the Tenant’s Rights “To Purchase The Property” on the blank lines provided.Article X will need the Signature Tenant to indicate if the Property has no pending repair issues and can be considered well maintained by the Landlord. If so, then mark the first statement in Article X. If the Landlord has not maintained the Leased Property and pending repair issues exist, then mark the second checkbox and define the matters that need repair on the available blank space.

Now, in Article XI, the status of Lease Compliance must be defined. If neither the Landlord nor the Tenant have violated the concerned Lease Agreement, then mark the first statement in Article XI.

If either Party has violated the Lease Agreement, then mark the second statement and report the offending party and violation on the blank space provided. If the violation has been rectified you must mark the checkbox labeled “The Breach Or Default Has Been Cured,” if not then mark the checkbox labeled “The Breach Or Default Has Not Been Cured.”

6 – The Tenant’s Dated And Notarized Signature Will Substantiate This Paperwork

Article XII must be read by the Tenant. If the Tenant agrees with this statement and the information reported in the previous articles, he or she will need to sign the “Signature” line then, enter the Date of Signature on the adjacent line. The next page has been provided for the use of the attending Notary Public. He or she will authenticate the Location, Attending Parties, and Signature Date of the Principal Signing. Once the Notary has supplied these items, he or she will then notarize this document.