Estoppel Agreement

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An Estoppel Agreement is used by Landlords that buy a rental property with Tenants already in place. The Agreement is used to confirm the terms of the current Lease, which the Landlord will have to comply with.

Document Last Modified: 4/1/2022

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If you buy a rental property with Tenants in place, you’ll have to comply with all the terms of the Tenant's current Lease Agreement. As a result, it’s important to know those terms prior to purchasing the property.

While reviewing the current Lease is important, it’s also important to use an Estoppel Agreement, which provides additional protection and ensures that you’re adequately informed about the Lease terms. While it’s uncommon for individuals to misrepresent or falsify a Lease, it does happen. To avoid this, Landlords should always use an Estoppel Agreement to confirm Lease terms with the Tenants. Not only is this a good practice, but it’s also one that’s generally required by lenders.

An Estoppel Agreement is completed and signed by the current Tenants and should address the key terms of the Lease, including the lease term, monthly rent payments, any additional expenses Tenants cover, any future rent payments made, the security deposit amount, and the current status of repairs and maintenance.

This Estoppel Agreement can be personalized as needed, but currently covers the key terms required by lenders and requested by Pro Landlords.

Note: Lenders generally require that Tenants sign this form in the presence of a notary.

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