Property Management

In Texas, an 'estoppel certificate' is used in commercial property management to:

ACertify that a property is free of environmental contamination
BConfirm the status of a tenant's lease, including rent amount, lease term, and absence of defaults✓ Correct
CCertify the property's square footage for tax purposes
DVerify that a tenant's credit has been checked

Explanation

An estoppel certificate is a document a tenant executes certifying the current status of their lease. It is used in commercial real estate when a property is being sold or refinanced so the buyer or lender can verify lease terms, rent amounts, prepaid rent, security deposits, and absence of landlord defaults. The tenant is 'estopped' from later claiming different terms.

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