What exactly is an EStoppel??

[Angela Henderson]

Can someone explain what an estoppel is and when and how does it get used? I've read about it in a few responses.  It seems as if it's a legal document that helps to validate information about existing tenants?  When is it appropriate to use this document?  We're looking into a triplex as our second investment property and most seem to have tenants. Is this document assurance of what tenants are paying and lease duration?  What happens to existing security deposits that tenants have paid to the previous owner?

Any help is appreciated! thanks!

[Bill Gulley]

Your letter is generally sent after a contract is accepted, agreed based on your due diligence of findings and sent to tenants to acknowledge as being the terms applicable.

Escrows should be transferred to your escrow account, deposits are not funds owned by an owner, by local custom, deposits may be credited to a buyer (actually improper, but done) and the buyer must open the escrowed account in like amount.  Never assume an existing escrow account as you also accept past accountings, open your account and ask for the funds, you can balance the amounts with the leases and acknowledgements from tenants. :)

http://www.homesurfer.com/real-estate-definitions/...