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.
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.
Obtain
estoppel certificates for at least 75% of tenants.
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.
