There was no mention of these coupons in the lease agreements or in the
estoppel certificates signed by the tenants and former landlord; however, these tenants had legitimate coupons issued by the previous owners and thus had valid concerns.
The other key step is obtaining
estoppel certificates from existing tenants.
Generally, a lender will thoroughly review the tenant leases and obtain tenant
estoppel certificates from major tenants prior to making a loan to the borrower on income-producing property.
0 million (the "Earnest Money") in escrow to secure its obligation to purchase the Property, which is nonrefundable except upon (i) the failure of the first mortgage lender to consent to the assumption of the existing debt by the Purchaser or (ii) the occurrence of certain other customary events, such as a default by the Seller or the failure of the Seller to deliver certain satisfactory tenant
estoppel certificates.
In addition to obtaining
estoppel certificates from commercial tenants, you should also require an
estoppel certificate from any guarantor to a commercial lease.
The bill creates
estoppel certificates for homeowners' associations.
0 million (the "Earnest Money") in escrow to secure its obligation to purchase the Property, which became nonrefundable on September 3, 2008 except upon the occurrence of certain customary events, such as a default by Seller or the failure of Seller to deliver certain satisfactory tenant
estoppel certificates.
Obtain
estoppel certificates for at least 75% of tenants.
Both pending asset sales are subject to customary closing conditions, including receipt of tenant
estoppel certificates.
Consummation of the transactions is conditioned upon the fulfillment of specific terms and conditions and delivery of specific documents as is customary for transactions of this type, including, among other terms and conditions, the delivery of current tenant
estoppel certificates for each of the properties.
Similarly, an attornment provision should be added, providing that the tenant will attorn to any new owner of the property after a foreclosure, and that the tenant will provide
estoppel certificates and minor lease amendments where necessary to satisfy a lender.
The lender should acknowledge that the representations of commercial tenants in
estoppel certificates may be limited by the terms of a tenants lease.
