Estoppel Certificate

An estoppel certificate is a signed document from a tenant confirming the key terms and status of their lease, used during property sales to verify that the lease terms match what the seller has represented. The certificate typically confirms rent amount, lease start and end dates, renewal options, security deposit, any amendments, and whether the tenant has claims against the landlord. For NNN investors, the estoppel is a critical due diligence document - it protects the buyer from discovering post-closing that the tenant disputes rent terms, claims a right to early termination, or has unresolved maintenance issues. Most purchase agreements require estoppel certificates as a closing condition. A tenant's refusal to sign or significant discrepancies between the estoppel and the lease can be deal-breakers. Lenders also require estoppels for financing, making them essential at both acquisition and refinancing.