Final answer:
An estoppel certificate is a legal document used in real estate transactions to confirm certain facts or representations. It helps prevent a party from later claiming different facts. The preparation and delivery of an estoppel certificate often involves a fee.
Step-by-step explanation:
An estoppel certificate is a document commonly used in real estate transactions. It is a legal statement made by a party, usually a tenant, confirming certain facts or representations. The purpose of an estoppel certificate is to prevent the party from later claiming a different set of facts.
For example, in a commercial lease, the landlord may request the tenant to provide an estoppel certificate confirming the current rent, the expiration date of the lease, any outstanding obligations, and other relevant lease terms. This helps the landlord ensure that the tenant is not misrepresenting any information and allows potential buyers or lenders to rely on the accuracy of the certificate when considering the property.
The preparation and delivery of an estoppel certificate usually requires the payment of a fee. This fee covers the administrative costs associated with drafting the certificate and reflects the value it provides in facilitating smooth real estate transactions.