Everything You Need to Know About Estoppel Letters Part 1

An estoppel letter is a critical part of buying or selling a unit or parcel that is part of a Homeowners Association (HOA). As a Tampa condo association management company that has been serving the area since 1981, we are intimately familiar with estoppel letters and their importance.

Today in Part 1, we will define an estoppel letter from a legal standpoint. In Part 2, we will further examine the specifics of tenant estoppel letters and HOA estoppel letters.

Florida State Law

An estoppel letter is sometimes called an “estoppel certificate”; in fact, Chapter 718 of the Florida Statutes simply refers to it as a “certificate.” For the purpose of consistency, this article will continue to refer to it as an estoppel letter.

Estoppel letters are important documents and are consequently addressed in both the Florida Condominium Act and the Florida Homeowners Association Act. These governing rules and regulations can be found in Florida Statutes 718.116(8) and 720.30851.

In the State of Florida, parcel or association unit owners are jointly and severally liable along with the previous owner for property-related debts. The estoppel letter is used to put the amount and the due date in writing.

Florida Statute 720.30851 states that once a request for an estoppel letter has been made, the HOA must deliver the document to the requested party within 15 days. The preparation fee must be clearly identified and the balance on the document is legally binding once delivered. In the event that a closing doesn’t occur, the HOA is legally required to refund the estoppel letter preparation fee within 30 days.

What Is an Estoppel Letter?

The legal definition of an estoppel letter is “a bar or impediment which precludes a person from asserting a fact or a right, or prevents one from denying a fact.”

An estoppel letter is used to prevent someone from taking something back at a later date and is part of due diligence when it comes to reviewing a property. It also delivers critical information regarding the tenant-landlord relationship to a third party. Often, this third party is a prospective buyer looking to purchase a landlord’s real property that contains the tenant’s premises.

Another common example is when the third party is a lender who will be secured by an interest in that property. Prior to closing, the HOA or HOA management company needs to supply an estoppel letter to the bank or lender to show whether they are owed any delinquent balances.

These include but are not limited to:

  • Legal fees
  • Recurring payments
  • Special assessments
  • Violations

This article is continued in Part 2, where we will delve into the specifics of tenant estoppel letters and HOA estoppel letters.

For information about Tampa condominium association management, please submit our proposal request form.

Anonymous | Thursday, April 12th, 2018 | HOA, Property Management |

SERVICE FIRST

Our founder, William C. Spivey, is a man who believes in the power of people...

LEARN MORE

FAMILY OWNED

We are a family-owned and operated company built in the Tampa Bay Area by a working-class Tampa family.

LEARN MORE

CUTTING EDGE

In today’s day and age, technological advancements are occurring at a rapid rate. These developments...

LEARN MORE

EASY TRANSITION

At WPM, we understand the sensitivity and importance of a management transition. We will proactively work in...

LEARN MORE

SEE WHAT OUR CLIENTS ARE SAYING

  • Couldn’t have asked for better service. It’s NEVER this easy dealing with property management companies. Great Job! Thanks so much!

    Brent I.

  • Cody Glass from the accounting department was very helpful and professional with a lot of courtesy to help me to understand and set up a new payment process.

    Eric F.

  • I work with Wise on a regular basis, as the nature of our business requires quick turn around times. They are kind and helpful when you need something.

    Natasha A.

  • I have always received great service from Wise. Any time I need help someone always answers the phone and directs me to the right department.

    Elaine R.

  • My name is George Florence, I am the Board President of Villas of Northdale, and I have been a Board member for 5 years now. We have had perfect help from Wise Property Management.

    George F.

  • Wise Property Management is the quintessential image of a professional, organized, comprehensive, deligent and knowledgeable Property Management company.

    Kristy D., South Pointe HOA Vice President.

  • I have been working with Jeanie Hunter of Wise Property for several years now. She has handled all our Tampa Villas South association issues promptly and with great efficiency.

    Ken C., Tampa Villas South HOA Vice President.

  • Very easy to work with and everyone is friendly. We have worked with them for a very long time and love the experience. They take pride in their work and truly enjoy what they do.

    Joey V.

  • Contact Information

  • Community Information

  • This field is for validation purposes and should be left unchanged.