Eisrael Gomez Realtor - Monterey County Blog

So you are selling your home and it has a tenant who is just fine and will move out once you have a buyer.  Even if things have always gone well with you and your tenant it may benefit both of you to contact your Realtor, property manager or attorney and draw up a Tenant  Estoppel. 

A Tenant Estoppel is usually used to clarify rent and security deposit amounts during a real estate transaction.  But it even helps in a few other important areas.   Here are few questions sometimes overlooked by landlords when selling:

1)  Are there any options that the tenant has?  Perhaps an option to rent for 2 years at a reduced rate?  If so, be sure the Estoppel reflects it.

2)  Are there any addendums or changes made to the original rental agreeemnt, verbal agreements etc.

3)  Is this a month-to-month or 1 year lease?

4)  What are the names of all the occupants?  This may sound silly, but just as an example:  What if one of the occupants is over 18 and disabled?  Even though the individual is not on the lease they may have certain rights that you may not be aware of.  

5)  Has the tenant received any free or partial rent, rebates, concessions, etc?  For example:  Let's say this is a triplex and the tenant is paying less rent for handling some maintenance on all three units.

These are just a few questions that can help clarify items.  Always be sure to attach a copy of the rental agreement.  Be sure the estoppel reflects all items related to the agreement becuase in court it will supercede any previous agreements.  Both you and your tenant want to be sure that all details are spelled out on the Tenant Estoppel Certificate.    Your tenant, your escrow officer, your lawyer, your realtor and most importantly, you, will be happy you completed the form to the best of your ability!