Estoppel Certificate
Gridlync land and infrastructure glossary.
An estoppel certificate is a signed statement from a tenant or landowner confirming the current terms and status of a lease, such as rent, term, and any defaults. It is commonly required during financing and transactions. Lenders and buyers require it to confirm there are no undisclosed defaults, prepaid rent, or side deals before they close, and the signer is generally bound by the facts stated in it. It turns the lease’s real-world status into a reliable snapshot for the transaction.
Estoppels depend on accurate, current lease data. Gridlync keeps every agreement’s terms in one place so estoppels and diligence come together quickly.
Example
While refinancing its data-center ground lease, NorthPoint Capital asks landowner the Aldridge Trust to sign an estoppel certificate confirming rent is current at $1.4 million a year, the term runs to 2061, and neither side is in default.