What is Estoppel Certificate?
An estoppel certificate is a signed statement from a tenant confirming the key facts of their lease — rent amount, term, deposits, and that there are no unresolved disputes — relied on by a buyer or lender during a commercial sale or refinance. It prevents a tenant from later claiming different terms. Lenders and buyers routinely require estoppels before closing.
Example: Before buying an office building, the purchaser collects estoppel certificates from each tenant verifying their rent and lease terms so there are no surprises after closing.