Estoppel Certificate
A legal clause that can be taken out by a
mortgage borrower. The certificate
verifies the major points of an existing lease between a landlord & tenant.
A signed statement certifying that certain statements of fact are correct as of the date
of the statement and can be relied upon by a third party, including a prospective lender
or purchaser.
Example:
The Good Money Savings Association asks Abel to sign an estoppel certificate,
which he does. Good Money Savings then sells the mortgage to Baker, who buys with confidence.
Abel is later estopped (prevented) from denying that he owed the money.
