Real Estate Investing | Estoppel Certificates | Title Company [E-106]

Real Estate Investing | Estoppel Certificates | Title Company [E-106]

– Stop in the name of title on this episode of Title Tuesdays. (upbeat music) Hey everybody welcome
back to another episode of Title Tuesdays. My name’s Kevin Tacher,
the founder and CEO here at Independence Title, also known as your title king. Today we are talking about
stop in our business. What does that mean? We’re talking about Estoppels. Estoppel certificates are very
important in our business. So we’re gonna talk about
what is an estoppel, how do we order an estoppel, and what information
does the estoppel show. Relevant to your next real estate closing. So when we say stop that means
we’re ordering an estoppel. There are many different places we can order an estoppel from. It could be from the
landlord and the tenent that are living in the property. It could be from a mortgage company. It could be from the
homeowners association, or condominium association. Don’t forget to subscribe below because we’re gonna do
another episode talking about homeowners associations
and condo associations. But on this episode we’re talking about what is an estoppel. An estoppel is a piece of paper. It’s a search that we basically order. Could be from the condo association
where we are asking them Are there any special assessments pending on this property? Is there any money due on this property? Is the seller delinquent
on their maintenance? This is all of the information
that is gonna be relevant to your next real estate closing. This is going to tell us how
much are the association dues, for you, for the property
that you are buying. This is going to tell us if
there are any pending violations with the homeowners association or the condominium association. This is going to tell us most importantly if approval is required by the buyer. So estoppel means stop and
tell me what’s going on. Stop and tell me what
is owed on this property that this buyer is trying to buy, and the seller is trying to sell. That is called an Estoppel Certificate. The second place we see an estoppel is when we are talking about tenants. So you can imagine you’re already thinking of what that’s going say. What is the tenant’s security deposit? Do you know how many times
we have conflicting demands when the tenant estoppel comes in and the landlord says they’re only holding $500 security deposit
but the tenant’s saying they gave 1,000. Someone was wrong so it’s very important that we order this estoppel certificate. It’s going to tell us
exactly what the tenant paid in a security deposit, to make sure it matches what
the seller is saying they had. It’s going to tell us when was
the last rent payment made. It’s going to tell us how
long is the lease for. This is all relevant information that your title company
should be ordering. Now we order that if we see
that a contract is subject to a lease we’ll order and
ask for the information to order a tenant estoppel if we see it’s in a homeowners or
condominium association we take care of ordering that. But you need to be very careful and one of the questions that people ask is what is this expensive
estoppel certificate? Sometimes these estoppels
can be anywhere from $300 all the way up to $800 I’ve seen. If it’s with an attorney
because it is in collections it’s a lot more. So you want to understand
what is an estoppel, know the cost, it’s usually a seller paid expense, where we go and we order
the estoppel to make sure you as the buyer are protected
from any future losses pursuant to to some money
to some type of money loss. And that’s the importance
of ordering an estoppel. If you learned something new talking about estoppel
certificates, subscribe below. Like our video and please
share this on social media. We love to see our videos on Facebook. You could put it up on Instagram. You could put it up on LinkedIn. It’s very important to
share this knowledge with our real estate community. So thanks for watching this
episode of Title Tuesdays. My name’s Kevin Tacher the
founder and CEO signing off, and I look forward to seeing
you at the closing table. (ethereal music)

One thought on “Real Estate Investing | Estoppel Certificates | Title Company [E-106]

  1. lol. That was a good one!

Leave a Reply

Your email address will not be published. Required fields are marked *