Real Estate Terms: Estoppel | Premier Crowdfunding
26 Feb

Real Estate Terms: Estoppel

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Before starting their lease, a potential tenant is often asked to sign what is called an estoppel. Simply defined, this is a document that prevents someone from asserting something contrary to what is given on the lease.

A tenant may be asked to “estop”, or to assert that a lease is accurate and true. For example, if Premier were buying a building that already has a tenant inside, we would have that tenant sign an estoppel to verify that there are no side-deals or verbal agreements with the former landlord that would deviate from the facts and obligations written in the lease. The term was first recorded in 1530, and comes from the Anglo-French stoppel, which meant “to stop or hinder someone from deviating from the truth.”

In order to close a real estate transaction, the bank or lending institution always requires an estoppel. Together with a good title and a survey, an estoppel serves as a verification of the transaction terms, and assures the accuracy of the figures presented.

When you invest in a property with Premier, you can rest easy knowing you’re investing with an experienced company that has developed, acquired, and leased over 1,000 real estate projects since the 1980s, most in the industrial and manufacturing sector. We consider all of our investors our partners, so you can be sure that every aspect of the real estate deal you are investing in has been rigorously vetted and thoroughly researched. Premier only takes part in the best deals – and so can you.