Property Management

In Illinois, a commercial tenant's lease often includes an 'estoppel certificate' clause. This requires the tenant to:

ACertify that they have paid all rent on time for the full lease term
BConfirm in writing the status of the lease (rent, term, deposits, defaults) upon the landlord's request, often needed for property sale or refinancing✓ Correct
CGive up the right to contest rent increases
DProvide proof of business insurance annually

Explanation

An estoppel certificate (or tenant estoppel) is a written statement by a tenant confirming the current status of their lease: the term, current rent, last payment date, any defaults, deposits, and any rights (options, rights of first refusal) claimed by the tenant. Landlords typically need estoppel certificates from tenants when selling or refinancing a property.

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