Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply

User Stats

121
Posts
14
Votes
Abad Marroquin
  • Chatsworth, GA
14
Votes |
121
Posts

Is this Certified Estoppel Letters correct?

Abad Marroquin
  • Chatsworth, GA
Posted

I am buying a few apartments and I have closing tomorrow. Because many tenants don't have a lease, we requested certified estoppel letters. In the contract it is stated that "Seller is to provide the buyers with Estoppel Certificates from all tenants prior to closing, and all security deposits being held on behalf of the tenants is to be transferred to the buyers on the day of closing". 

The listing agent told me that the Property manager who is managing for the seller is not being cooperative. So, he sent  the  estoppel letters to the tenants to complete. Tenants completed the letter and returned them to the agent, and he sent them to me.  Aren't the letters supposed to come from the property manager who manages the properties and holds the security deposits?  I asked the agent if I would get the security deposits at closing as it is stated in the contract. He said, "No, those security deposits are going to be transferred from the seller's property manager to your property manager." I am afraid the seller's agent will not send those security deposit to my property manager and then I am going to be screwed. I called the closing attorney and he said he will not disburse the funds to the seller before everyone complies with the term of the contract. What I am afraid of is that the seller's property manager does not know anything about the estoppel letters and therefore he is not obligated to transfer the security deposits to my property manager. He can simply say that he does not have any security deposit and because he did not send us the estoppel letters. I am going to be attaching a copy of one of the estoppel letter. Please look at it and tell me what's missing. I don't see the property manager's signature, nor the seller's agent who prepared them. 

  • Abad Marroquin
  • Most Popular Reply

    User Stats

    17,432
    Posts
    30,082
    Votes
    Russell Brazil
    • Real Estate Agent
    • Washington, D.C.
    30,082
    Votes |
    17,432
    Posts
    Russell Brazil
    • Real Estate Agent
    • Washington, D.C.
    ModeratorReplied

    The title company can just take the security deposit total from the sellers funds and credit them to you on the HUD1. 

    business profile image
    District Invest Group
    5.0 stars
    44 Reviews

    Loading replies...