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Estoppel is a legal principle that prevents someone from arguing something or asserting a right that contradicts what they previously agreed to or said. Put simply, estoppel prevents one person from contradicting an action or statement from the past.
An estoppel clause in contracts, sometimes called a non-reliance clause, refers to a provision that prevents a party from asserting or claiming certain rights or facts that are different from what they previously represented or agreed upon in the contract.
An estoppel certificate gives landlords, investors and lenders additional security that the tenants promises will be kept. They also benefit tenants as the document confirms that the landlord will not change any agreed-upon terms to the lease.
What Is Estoppel? Estoppel is a legal principle that prevents someone from arguing something or asserting a right that contradicts what they previously agreed to or said. Put simply, estoppel prevents one person from contradicting an action or statement from the past.
Estoppels are always provided by the propertys HOA management company or board members. The title company is responsible for ordering this document; the estoppel fee is usually paid by the seller. There is a trend, however, for this fee to be split between the buying and selling parties or paid by the seller.
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