Posted by Sandy FL on December 15, 1998 at 18:03:07:
Yes, an estoppel letter is also issued by the bank holding the mortgage on your property for the same reason. It tells the title company where to send the funds, and how much, in order to pay off a mortgage.
What is an ESTOPPEL agreement? - Posted by ScottE
Posted by ScottE on December 15, 1998 at 12:46:25:
And what would it be used for?
Thank you
Scott
Re: What is an ESTOPPEL agreement? - Posted by Irwin
Posted by Irwin on December 16, 1998 at 05:19:28:
“Estoppel” means that one who has made a statement of fact, i.e. given information that someone else has relied, is “estopped” to deny those facts later. I’m a tenant of a building you plan to buy. You get a letter from me where I acknowledge my lease is for 3 years at $500 per month, with 1 option to renew, no options to purchase etc… You buy the building relying on my letter. The law says that I would be “estopped” i.e. not permitted, to claim that my rent is only $400, or that I have a 5 year lease etc…
Re: What is an ESTOPPEL agreement? - Posted by Stacy (AZ)
Posted by Stacy (AZ) on December 15, 1998 at 14:52:58:
I’ve only heard of an estoppel letter. An estoppel letter is where the owner of a note documents the current state of the note, such as the remaining balance, whether the payments are current, etc, in preparation for selling the note. It’s one piece of documentation a note buyer needs to buy the note.
Maybe there are other uses for it, but this is the only one I know of. Maybe one of the REI experts will correct me, or add to this.
Stacy
Re: What is an ESTOPPEL agreement? - Posted by Rob FL
Posted by Rob FL on December 15, 1998 at 21:22:26:
Although estoppel letters are generally used to get payoff figures from lenders, they can also be given by anyone recieving or making payments. Other examples are from homeowners/condo associations to show payment of dues. Tenants might give you an informal estoppel letter, basically just to show you what their current rent is and what deposits they have (stuff you should verify before buying income property).