Taking the “Temperature” of a Potential Real Estate Financing Transaction – the Tenant Estoppel Certificate

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Taking the “Temperature” of a Potential Real Estate Financing Transaction – the Tenant Estoppel Certificate

One of the first things a doctor generally does when trying to diagnose the ailment of a patient is to take the patient’s temperature to help to make an informed judgment as to the patient’s health and to find something that may not be readily apparent from a visual examination.

In the world of commercial real estate financing, lenders have their own version of the doctor’s thermometer, a tool by which the “temperature” of a potential financing can be taken. It’s called the tenant estoppel certificate. In its simplest form, the tenant estoppel certificate is a document that lenders require borrowers to obtain from commercial tenants occupying property to be financed. A lender can demand that the tenant estoppel certificate be in form and substance acceptable to the lender, in order for the financing transaction to close...

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Published In: Business Organization Updates, General Business Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Robert Marsico, Scarinci Hollenbeck, LLC | Attorney Advertising

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