finance
estoppel certificate
An estoppel certificate is a signed statement confirming facts about a loan or lease at a point in time, such as the unpaid balance, interest rate, payment status, or a tenant's rent, deposit, and lease terms. Once signed, the party cannot later claim different facts, because they are "estopped." Buyers and lenders rely on estoppel certificates when a loan is assumed, a mortgage is sold, or rental property changes hands.
- Exam tip
- Estoppel certificates are often required from tenants when buying income property, and from lenders when a buyer assumes a loan.
- Example
- Before buying a strip mall, the buyer gets an estoppel certificate from each tenant confirming monthly rent and that no rent was prepaid.
Related terms & state variants
Sources
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Last verified: 2026-10-23