Posted by ny25 on 8/22/05 2:34pm
Msg #60826

Estoppel Certificate

Can anyone (maybe Hugh?) define what this document is in plain English (or Laymen's terms)?

Thanks in advance for any help!

Reply by HDW_TN on 8/22/05 3:11pm
Msg #60838

ESTOPPEL - (estopped) A bar which precludes someone from denying the truth of a fact which has been determined in an official proceeding or by an authoritative body. An estopple arises when someone has done some act which the policy of the law will not permit her to deny.

In certain situations, the law refuses to allow a person to deny facts when another person has relied on and acted in accordance with the facts on the basis of the first person's behavior.

There are two kinds of estoppel.

Collateral estoppel prevents a party to a lawsuit from raising a fact or issue which was already decided against him in another lawsuit. For example, if Donna obtained a paternity judgment against Leroy and then sued him for child support, Leroy would be collaterally estopped from claiming he isn't the father.

Equitable estoppel prevents one party from taking a different position at trial than she did at an earlier time if the other party would be harmed by the change. For example, if after obtaining the paternity judgment, Leroy sues Donna for custody, Donna is now equitably estopped from claiming in the custody suit that Leroy is not the father.

An example of the slowly disappearing tendency of the legal profession to speak in secret code. All it means is 'stopped,' 'blocked' or 'not allowed.' Not only is it bizarre but the term does not appear to originate in any known language. Our research indicates it started either as a legal fraternity's drunken prank or was the result of an unknown Judge's severe speech impediment.

Reply by newlysmomva on 8/22/05 3:46pm
Msg #60845

Ha! Ha! So true!

Reply by newlysmomva on 8/22/05 3:46pm
Msg #60846

Ha! Ha! So true!

Reply by Charles_CA on 8/22/05 4:22pm
Msg #60848

All the jargon and legalisitic postioning aside and estoppel certificate is an extremely simple document. It is used in commercial sales of property with tenants on it. The estoppel certificte is a check and balance on the sellers accounting when a property is transferred, All it does is ask the tenant if the amount of deposit and the rents are as stated by the seller, that's all noting more nothing less.

Best regards,
Charles

Reply by MsRobbo on 8/22/05 8:08pm
Msg #60903

I do closings for one lender that uses it in every loan. When you try to explain it to borrowers, they just give you a funny look and sign!

Reply by TitleGalCA on 8/22/05 9:26pm
Msg #60933

Love it, Charles....Easy, simple explanation of a scary sounding document.

Reply by Michael Murray P.A. CNSA on 8/22/05 8:03pm
Msg #60901

I have also needed to get an estoppel cert. from Homeowners Associations in order to close. Works both ways, to make sure a buyer has met the HA requirements to move in or that the seller is up to date on all Assoc fees with nothing outstanding. It's a basic letter/form.