WHAT IS AN ESTOPPEL CERTIFICATE
AND WHY WOULD YOU WANT ONE?
Estoppel certificates are documents where one party to a contract makes certain representations to a third party about the status (good, bad or ugly!) of a contractual relationship.
The following are examples:
An estoppel certificate is used as part of routine due diligence when someone is buying assets and wants third parties to confirm the accuracy of certain facts or a lender is lending money and wants to also confirm the accuracy of those facts.
- A lender obtains an estoppel certificate from a tenant about a lease with tenant's landlord, who is a borrower under a loan, confirming the terms of the lease.
- A buyer of a shopping center asks a tenant to confirm that their landlord is in compliance with the lease between landlord and tenant and to confirm facts such as rental amount, prepaid rent, claims of default, etc.
- A buyer of a business asks certain key customers to confirm the validity of a major contract.
Marquis Aurbach Coffing is a full service firm and can answer specific questions in more detail. Please do not hesitate to contact us.
Ms. Drury is a Shareholder in the firm of Marquis Aurbach Coffing in Las Vegas, Nevada, and is chairperson of their transactional department. Drury was named a Leader in the Field of Real Estate for 2011 and was also named by Best Lawyers in America in the specialties of Corporate Law and Real Estate Law for 2011. Ms. Drury's practice focuses on transactions, with an emphasis in real estate. She documents and oversees entity formation, land and business acquisition, construction agreements, loans (construction and permanent), general operational and contract needs, and the ultimate sale of land or improved properties and businesses. Ms. Drury serves on the Executive Committees of the State Bar of Nevada's Real Property Law Section and Business Law Section, which, among other things, draft statutes for consideration and adoption by the legislature of the State of Nevada. Prior to joining Marquis & Aurbach, Ms. Drury served as Associate General Counsel at Station Casinos, Inc. Ms. Drury has a Bachelor of Arts in International Relations and Print Journalism from the University of Southern California, with a minor in Business Administration. She has a Juris Doctor Degree from the University of California, Hastings College of the Law.