How to get an estoppel agreement signed

[Brad E.]

Hi all - I just put my first property, a duplex, under contract yesterday. I'll be inheriting 2 tenants and from what I've read I should get an estoppel agreement signed by the t

[Frank Chin]

I bought and sold a number of MF in my area in NY. In all cases, the seller's attorney would send an estoppel letter for the tenant to acknowledge, and then send a copy to me, when I'm the buyer. When I'm the seller, I furnish them, and buyers request them.

It is not an agreement, but an acknowledgement of facts, mainly if there are leases, what are the terms, deposits held and how much, and also if there's any other facts relevant to the tenancy.

You would not be the one preparing it, it would be the seller or his attorney, because you would have no idea what that agreement is between the seller and his tenants. 

As to not doing it, I see many posts here about tenants vacating a property, and the former owner still has the deposit. At least in closings in NY, all deposits are turned over to the buyer, and leases assigned to the buyer at the closing. And unless your P&S contract allows errors or omissions can be pursued after closing, you're out of luck. You wind up owing the tenant the deposit where you were never paid.

Without the tenant estoppel, all you have is the seller's version of the facts. The tenant estoppel letter establishes the tenants version, signed by the tenant, which they cannot deny on your takeover. 

Normally, the standard tenant lease requires the tenant to sign a tenant estoppel letter upon request. It is foolish not to request it.