Escrow & TitleIntermediateDelaware Exam

What is 'estoppel certificate' in Delaware commercial real estate?

AA lender's certificate certifying the mortgage balance at closing
BA document signed by a tenant certifying the current lease termsCorrect
CA title insurance certificate from the title company
DA certificate from the Delaware Real Estate Commission confirming a licensee's status

Why A document signed by a tenant certifying the current lease terms Is Correct

Answer B: A document signed by a tenant certifying the current lease terms

An estoppel certificate is a document in which a commercial tenant certifies the material terms of their lease (start date, rent amount, security deposit held, lease expiration, any defaults, any pending claims). Buyers and lenders rely on these certificates in commercial transactions because tenants are later 'estopped' (barred) from claiming different terms.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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