No Estoppel Statement?

[Mindy Jensen]

Looking at a Triplex today, the listing agent said they don't typically give an estoppel statement, they just provide copies of the lease.

I've never purchased an occupied property before, and everything on BiggerPockets says to get an estoppel statement from each unit.

Thoughts? @Joe Splitrock, @Nathan Gesner, @Russell Brazil

[Charlie MacPherson]

@Mindy Jensen  I wouldn't consider buying without an estoppel certificate.  The risks are obvious - the tenant ends his lease and claims that you're holding a security or pet deposit when you aren't.

I'm sure that's no fun in CO, but here in MA the tenant can take you to small claims court and be awarded up to triple damages.

A simple estoppel certificate will defeat that kind of claim - probably before it even makes it to court.