What Is An Estoppel Certificate, and Should I Sign It?
This document can help protect both tenants and landlords.

This document can help protect both tenants and landlords.
An estoppel certificate is a legally binding document used to clarify the current status of lease agreements and to protect all parties—including renters—in a real estate transaction.
Let’s break down, in plain English, what an estoppel certificate is, and why your landlord might ask you to sign one.
An estoppel certificate, sometimes referred to as an estoppel letter or estoppel agreement, is essentially a document that confirms the details of a rental agreement between a landlord and a tenant. It’s like a snapshot that shows the current terms of the lease, including:
When a property is being sold or refinanced, this certificate assures the new owner or lender that the lease agreements are exactly as the tenant and landlord say they are, helping prevent any misunderstandings or disagreements later on.
An estoppel certificate is like a promise note that says everything in a lease agreement is true and up-to-date. It’s used in real estate—mainly in commercial leases—to make sure everyone agrees on the lease details, like how much rent is and if there are any special rules.
A tenant estoppel certificate is pretty much the same thing, but makes it clear that it’s the tenant who is confirming or promising the details of the lease. It’s a way for the tenant to tell others, like new owners or banks, “Yep, this is what I agreed to, and everything’s in order.”
Estoppel certificates prevent landlords or new owners from claiming discrepancies in lease terms or from altering the conditions of your lease without agreement. Basically, it locks in your current lease terms, providing a layer of security amidst the potential upheaval of property transactions.
You might be required to sign it, depending on what your lease agreement says.
As a renter, if you’re asked to sign an estoppel certificate, it’s usually because your landlord is selling the property, refinancing, or dealing with a new lender. So if you’re feeling hesitant, signing an estoppel certificate is a standard part of real estate transactions and helps protect your rights as a tenant by verifying the terms of your lease.
Refusal to sign an estoppel certificate when requested, depending on your lease agreement, could be considered a breach of your lease, which might lead to legal challenges or even eviction.
It’s crucial to understand that signing an estoppel certificate, provided it accurately reflects your lease, does not put you at a disadvantage but rather safeguards your agreed-upon lease terms.
Here are some general steps to consider following if you’re asked to sign an estoppel certificate as part of your lease terms:
Clarifying your lease terms in an estoppel certificate can help foster a more secure renter-landlord relationship and give you peace of mind that you’re protected in your rental.
And if you’re looking for more ways to achieve stress-free living as a renter, why not take Lemonade for a spin? Lemonade renters insurance covers you and your personal property against things like theft, fires, vandalism, windstorms, and more—as well as injuries someone might sustain at your place.
While more common in commercial real estate, estoppel certificates can also be relevant in residential leasing situations, especially in multi-family properties, or when a property is being sold or refinanced.
Landlords often request estoppel certificates before selling the property or when getting a new loan, to show buyers or lenders that the lease terms listed are correct and there are no hidden issues—like unpaid rent.
You might be required to sign an estoppel certificate to verify the terms of your lease and the status of your rent payments, providing essential information to prospective buyers, new owners, or lenders.
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