Property Management
An estoppel certificate in commercial real estate is used to:
ACertify the property's market value
BConfirm the terms of a lease and that no defaults exist, provided to a buyer or lender✓ Correct
CAuthorize the property manager to sign leases
DDisclose all environmental hazards on the property
Explanation
An estoppel certificate is a document signed by a tenant confirming the terms of their lease (rent, term, options) and that the lease is in full force with no landlord defaults. Buyers and lenders often require them to verify lease terms before acquisition or financing.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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