Estoppel certificate florida

Estoppel certificate florida

What are tenant estoppels?

Receiving a request for a resale certificate will make a community association manager feel like Rick from Casablanca. While it’s nice to see some extra cash coming in, the amount of trouble that comes with it doesn’t appear to be worth the hassle.
The feared “resale disclosure” process irritates sellers because it adds extra fees and hoops to jump through before a home can be successfully sold. However, one look at some of the horror stories told by other home buyers demonstrates that each of those extra hoops can be a blessing in disguise for the buyer.
The Estoppel Letter (also known as a Resale Disclosure, Resale Certificate, Homeowner Resale Package, HOA Demand Letter, Escrow Letter, or Closing Letter) protects both the buyer and the community association from a rocky start.
In addition to the above, many resale packets must also include a copy of the community association’s Covenants, Conditions, and Restrictions (CC&Rs) as well as a copy of the community’s most recent financials. These documents serve to keep the new owner up to date on the state of the association as well as the rules they will be obliged to follow as a member.

What is an estoppel letter | the florida legal advocacy

While Florida Statute does not currently specify what should and should not be included in the estoppel letter, we have provided a list of suggestions based on our more than 30 years of experience as a leading Tampa HOA management firm.
The estoppel letter’s intent is to notify a buyer of delinquent fees on a property prior to closing, but the process is equally important for the HOA. Years of delinquent fees could be lost if the calculation is incorrect. If you’re still unsure how to write an estoppel letter, we suggest speaking with a professional HOA management firm in Tampa.

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Some associations have yet to comply with the new rules requiring condominiums, cooperatives, and homeowners associations to obtain Estoppel Certificates. Prior to July 1, 2017, you only had to tell a potential buyer about the monies owed to the association that were related to the unit they were buying. You must now provide a certificate that includes a significant amount of additional information, as detailed below. If the information is improperly prepared, you may be barred (or prevented) from later pursuing that person for the funds or violations that were omitted from the certificate. Because some of the information requires a review and analysis of your governing documents, I recommend that you have your attorney prepare the initial certificate and give it to your manager or management firm.


Q: We have a small condominium that we handle ourselves. A title insurance company recently sent us a letter stating that we must provide a “estoppel letter” within the next ten days. No one on our board is familiar with the word. We did some research on the internet and discovered that it includes closings. Could you please elaborate on what we are required to do? (via e-mail, E.S.)
When a unit closes, title insurance companies typically request estoppel letters to ensure that all assessments are paid in full and to prorate assessment contributions between the buyer and seller, similar to how taxes are prorated. If the title company fails to check the amount of assessments that may be due, the new owner becomes responsible for all past due assessments and may file a claim for contribution against the title insurance company.
As a result, when the association indicates that a certain amount of money is owed for a unit, the title company and closing agent use that figure to calculate closing adjustments and issue title insurance. In other words, if the association responds that a certain amount is due, it is “estopped” from claiming that a different amount is due later because the parties have relied on the numbers provided. That is why it is critical to take great care when preparing these documents, which, under current law, also require the provision of non-assessment-related information.

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