Estoppel, what a funny word, but in Title Insurance, it is a word that is used and needed to get you to the closing table!

What exactly is an estoppel? An estoppel letter is typically used in a transfer or conveyance of real property before the Closing transaction. It is a document sent to a homeowners’ association (or condo association), to a city/municipality, or a tenant requesting a payoff of a mortgage, assessments or taxes due, or rental amounts due on a lease, to incorporate these amounts into the Settlement Statement for the buyer and seller of the real estate. It certifies the conditions that must be met by the title company to make sure that nothing is due and owing to the appropriate place at the time of closing.

Estoppel Property GuidingIn order to purchase real property, an Estoppel request must be made by the title company. The information obtained within the Estoppel is then used to compile cost for the closing. All fees and cost of the closing can be found on the Settlement Statement or the HUD Statement that you will receive at your closing.

An Estoppel lets us, the Title Company, know if all maintenance fees are current and up-to-date, any assessments that are due or that maybe pending, the name of the Insurance Agent that the Association uses, and any possible violations against that property. All responsibility of payment for the estoppel is on the Seller (Owner).

Due to large amounts of requests from different title companies, the completion of the Estoppel may take up to 15 business days, depending on the association or management company. Just remember NO estoppel NO closing……

Have questions or concerns about your estoppel letter?

Call me 239-415-6574 or email me

Posted on August 3, 2012, in Title and tagged , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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