Posted by IB (NJ) on January 25, 2011 at 22:22:54:
I’m with you. Learned about the importance of buyers doing this after reading something from Ray Alcorn on the issue. It was just in time for my 2nd commercial deal which happened to be a probate situation. Went to the tenants with the estoppel letters to sign. Sure enough came across a commercial tenant who had been allowed, in writing, to pay $1100 A YEAR by the original owner and who refused to sign my letter saying that he was paying $950/month. The heirs claimed to now know anything about it. Had I relied on them I’m sure they would have produced a fake lease.
estoppel letters from tenants - Posted by Lin (NC)
Posted by Lin (NC) on January 25, 2011 at 21:26:04:
I had always understood estoppel letters from tenants that state monthly rent rate and security deposit were part of the buyer’s due diligence, and should not come from the seller. It’s part of the buyer’s independent verification of the seller’s rent roll, so why would you want the seller providing it??
The reason I ask is that I’m the seller (rare for me) and I’m being asked to provide those letters as well as tax returns and operating statements, which I’ve already provided. Have I misunderstood estoppel letters?
Deed-in-lieu, estopl ltr demanded - Posted by John Merchant
Posted by John Merchant on January 26, 2011 at 12:36:50:
In my DOT foreclosure trustee business it occasionally happens that the debtor agrees to give deed-in-lieu of formal completed foreclosure.
In a case I’m completing now, the debtor (in Army in IRAQ) willingly gave us her DIL but now the title co also wants her estoppel affidavit.
While I agree it’s a good idea and from now on I’ll be getting one with every DIL, it hit me out of the blue this time and it’ll be interesting to see if soldier cooperates.
Just shows that party wanting the T policy had better be in constant contact with the TC so he can know what it’s going to require.
Re: estoppel letters from tenants - Posted by Frank Chin
Posted by Frank Chin on January 26, 2011 at 09:36:31:
Lin:
Interestingly enough, I’m rarely a seller also, but I’ve been asked to furnish estoppel letters to my tenants to sign, and then forward them on to the buyer. You’re right, but I thought nothing of it.
Also, I assigned the tenant leases to the buyer as well, so if there are any descrepancies, he’ll find out about it by then. And I notified my tenants that the deposits been transferred to the buyer.