Estoppels: Necessary for Commercial Real Estate Transactions?
Ever wonder if you need an estoppel in a commercial real estate transaction? Or perhaps just wonder what an estoppel is? Kyle D. Tucker, a member of Eastman & Smith, discusses some aspects of estoppels in a Leverage.com post, “When Do You Need an Estoppel in Commercial Real Estate?” According to the article:
- Estoppels prevent a person from asserting a claim that is contrary to a previous statement.
- A tenant estoppel typically certifies the terms of the lease and that there are no default claims or offsets.
- Estoppels are beneficial to sellers, buyers and lenders.
In the article, Mr. Tucker describes tenant estoppel certificates as a “due diligence item” and advises acquiring estoppel certificates before closing on a property. As a landlord or owner of commercial property, including a lease provision that requires a tenant to execute and deliver an estoppel certificate upon request is best practice.
From annexation to zoning, Mr. Tucker advises clients on all aspects of real property, including commercial development and due diligence items. He is devoted to helping his clients achieve their goals. Should you have any questions regarding estoppels or other real estate matters, please contact Mr. Tucker.