What is an estoppel letter?

An estoppel letter is used in a transfer or conveyance of real property prior to the closing transaction.


The document is sent to a bank (or other lender), homeowners association (or condo association), to a city/municipality, or a tenant requesting:

  • Payoff of a mortgage
  • Assessments or taxes due
  • Rental amounts due on a lease

The estoppel letter is meant to incorporate these amounts into the settlement statement for the buyer and seller of the real estate.

Due Dates

Assessments and payments due must be incorporated into the amounts due at closing and paid at the time of the closing. Some amounts may be pro-rated, but all must be included in the settlement statement. The estoppel letter is the document that facilitates this process.

Show All Answers

1. What is an assessment?
2. Are 'dues' different than 'assessments?'
3. What is a homeowners association (HOA)?
4. What is a community association?
5. What is a neighborhood association?
6. What is the difference between a homeowners association and a neighborhood association?
7. What is association management?
8. What is an association management company and what do they do?
9. Does my community have an association management company, and if so, how do I contact them?
10. What is a 'managing agent'?
11. What is a 'proxy'?
12. What is a 'quorom'?
13. What is a 'recuse'?
14. What is a board of directors?
15. How do I contact my board of directors?
16. What is Community Associations Institute?
17. Is the Community Associations Institute a national organization, or are they local to my area?
18. What are CC&Rs?
19. What are 'bylaws'?
20. What are governing documents?
21. What is a lien?
22. What is the 'declaration'?
23. What is an estoppel letter?
24. What is an 'easement'?
25. What is a 'notice of noncompliance'?
26. What is a 'common area'?
27. What are ordinances?