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Estoppel Certificate

Posted on: 12th Dec, 2006 03:00 pm
does anyone know about the Estoppel Certificate, I have been trying to locate some information on what it is but cannot find anything, any information would be helpful
Hi Ferdinand,

It is one type of contract clause where a borrower declares that the collateral which has been pledged or the mortgage debt is true as on the date on which such an agreement is made.
Posted on: 12th Dec, 2006 03:07 pm
Hi,

What an Estoppel Certificate does is that it prevents a borrower from putting a different claim any time later.

It is a method by which a borrower certifies that a specific stated amount has been obtained with a lien of the mortgage debt. It also prevents the borrower from claiming any variance between the stated amount and the actual balance due.
Posted on: 12th Dec, 2006 03:50 pm
Hi Ferdinand,

Estoppel certificate refers to a document which states the property owned by a borrower is under a lien due to a specified amount of home loan being taken. The debtor, thus, cannot deny that the unpaid balance is not equal to the loan amount stated on the certificate.

For example: a lender, say ABC asks Robert to sign an estoppel certificate. ABC then sells the loan to another lending company, PQR. Since Robert has signed the certificate, he cannot deny that he owes the amount stated on the certificate. He will have to pay the unpaid balance.

Thanks
Posted on: 13th Dec, 2006 12:31 am
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