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Estoppel Certificate

Explore what an estoppel certificate is in Canadian real estate, what it verifies, and how it protects buyers and lenders during condo and lease transactions.

Estoppel Certificate

May 22, 2025


What is an Estoppel Certificate?

An estoppel certificate is a legal document used in real estate, particularly in condominium or commercial property transactions, to confirm existing financial and legal obligations related to a unit or lease.

Why an Estoppel Certificate Matters in Real Estate

In Canadian real estate, estoppel certificates are commonly requested during condo purchases or investment property sales. The document verifies:
  • Current ownership and tenant status
  • Outstanding condo fees or arrears
  • Bylaw compliance and legal proceedings
  • Special assessments or reserve fund contributions

Buyers and lenders use the certificate to ensure there are no unexpected financial obligations tied to the unit that might affect closing.

Understanding the estoppel certificate helps protect buyers and lenders from inheriting liabilities and ensures transparency in multi-unit or managed properties.

Example of an Estoppel Certificate in Action

Before finalizing the purchase of a condo, the buyer’s lawyer obtains an estoppel certificate confirming no arrears or special assessments are owed.

Key Takeaways

  • Confirms financial/legal obligations of a unit.
  • Used in condo and commercial deals.
  • Requested by buyers and lenders.
  • Prevents assumption of undisclosed debts.
  • Part of due diligence.

Related Terms

  • Condo Fees
  • Bylaws
  • Reserve Fund
  • Special Assessment
  • Disclosure Statement

Additional Terms

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