What Is An Association Estoppel Letter And Do I Need One?
When purchasing property, future homeowners are often required to obtain and complete a significant amount of paperwork denoting one issue or another. Individuals purchasing a home or condominium governed by an association should request a notice known as an Association Estoppel Letter. Nishad Khan P.L., a firm of real estate lawyers in Orlando FL invites future property owners and interested parties to read what this notice is, the purpose it serves, as well as how to obtain it.
What Is An Association Estoppel Letter?
This document is typically prepared by homeowners or condominium associations and required by title companies prior to closing on a specific unit property. The purpose of the letter is to disclose whether the property’s current seller owes any outstanding balances such as monthly maintenance fees to the association in question.
The Importance Of An Estoppel Letter
Should the seller be in arrears on any specific fees that are owed to the association, such circumstances could delay the process by which the property transaction (sale) can be completed. This is because title insurance companies will only issue general warranty deeds to properties that do not possess any issues that render title to the property unmarketable.
The Estoppel Letter will contain specific information including the name and contact information of the seller and the association in question, in addition to an explanation of the outstanding debts and the exact amounts owed. When the property buyer’s title company requests an Estoppel Letter, the document must be delivered to said entity within a specific duration and be signed by the association in question.
Should Counsel be Retained?
Failure to request an Estoppel letter could result in issues relating to the status of good and marketable title to the property. In other instances, the letter could contain specific information relating to the association other than financial responsibilities. Therefore, prospective property owners are strongly encouraged to seek the counsel of a real estate lawyer if they are purchasing a property governed by an association.
Individuals residing in central Florida who have questions about Estoppel Letters, or any other real estate related issue are encouraged to contact Nishad Khan P.L., real estate lawyers in Orlando FL. More information can be found by visiting nishadkhanlaw.com.