By Helene Lesel
Q: I've been asked to fill out an estoppel form by my landlord. What's this form about?A: From the root word "estop," the legal concept behind this fill-in document is to establish a set of "as of right now" details that are part of your tenancy and establish details regarding your individual unit.
Virtually unheard of a scant decade ago, estoppel forms or certificates have become increasingly popular. Why? Usually about a page in length, details bring into focus a past and present picture of the unit. The form also provides lenders or borrowers with concrete information during a sale. Items covered in estoppel forms often include:
- Lease details, such as all original occupants, landlord and date. This helps establish who originally occupied and handed over the keys to the place.
- Current occupants, especially noteworthy if not the same as original. Ditto for landlord.
- Security deposit amount in one space, plus another for "other deposits", just in case further funds are in the collection or on the original lease. While California State law currently only allows one type of deposit, some older leases mention "cleaning deposits", "key deposits" and a host of others that are no longer allowed by California State Civil Code to be separate or non-refundable.
- A statement that the Tenant "represents that the original Lease remains in full force and effect and constitutes the entire agreement between landlord and tenant except… providing space to fill in any amendments, rights, extensions, etc."
- Renewal options (if any) regarding the lease, and if exercised.
- No claims, counterclaims, defenses or setoffs against the Landlord by the tenant are valid except… as named.
- Notes if any right or option to buy the property was first offered to the tenant, establishing a preferential right.
- That the tenant has not filed (or is in the process of) any type of bankruptcy.
- Rents have been paid in full as of date of the certification.
- Tenant is not in default under any terms of the lease, nor is the landlord.
Most of the information is easy to understand on the form, but if any term or item is unfamiliar, ask the person who provided the document before signing the final certificate. Properly used, an estoppel certificates provide a blueprint for the next owner regarding your tenancy and hopefully prevents any misunderstandings in the future.
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