Everything You Need to Know About Estoppel Letters Part 2
If you are buying or selling a unit or parcel that is part of a Homeowners Association (HOA), you may already know an estoppel letter will need to change hands. That said, as a leading Tampa homeowners association management company, we know there is often some confusion surrounding the details.
Though Florida Statute covers estoppel letters in Statutes 718.116(8) and 720.30851, the law does not specifically define what should and should not be included in the letter. However, in our 30+ years of Tampa HOA property management, we have become intimately familiar with the intricacies of tenant estoppel letters and HOA estoppel letters.
This article is a continuation of Everything You Need to Know About Estoppel Letters Part 1.
Tenant Estoppel Letters
A tenant estoppel serves to verify the terms, conditions, and current status of the lease. When it comes time for a multi-unit property to be sold, the new owner must be able to rely on their new tenants’ rent. This information is of course also relevant to the lender. Essentially, this document “estops” tenants from later claiming a different agreement, rent price, or any other relevant facts.
HOA Estoppel Letters
Depending on the property, a clean transfer of ownership also requires an HOA estoppel letter. It should include findings pertaining to the subject property and to the association as a whole. This often includes the following:
- Association approval requirements
- Insurance contact information
- Outstanding balances
- Special assessments
- What Should an HOA Estoppel Letter Include?
- As mentioned earlier, there are no concrete laws regarding what an estoppel letter must or must not include.
That said, it is best practice to include the following:
- The name of the HOA
- The contact for the HOA
- The of name the property owner
- The contact for the property owner
- The address
- A description of the property
- The total amount of fees owed to the association
- An itemized list of these fees, if requested
- The date for which the balance will remain unchanged or what is owed through the date of closing
- Instructions regarding where to send payment
- Signature of an officer of the association or authorized agent
Tampa HOA Property Management
It may seem like an estoppel letter is all about protecting the buyer, but it is actually just as important to the HOA’s financial well-being.
If the total amount of fees owed to the association is calculated incorrectly, it can make years of delinquent fees unrecoverable and cause the HOA to lose massive amounts of money. Consulting with an established Tampa homeowners association management will ensure your estoppel letter includes all critical information and is prepared with precision.
Our founder, William C. Spivey, is a man who believes in the power of people...LEARN MORE
We are a family-owned and operated company built in the Tampa Bay Area by a working-class Tampa family.LEARN MORE
In today’s day and age, technological advancements are occurring at a rapid rate. These developments...LEARN MORE
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!
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.
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.
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.
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.
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.