If you're buying or selling a condo, you'll likely encounter something called an estoppel letter. Don't let the fancy name scare you! It's a pretty straightforward document that basically tells you the financial status of a specific condo unit within an association. In this article, we'll break down what a Condo Association Estoppel Letter Sample is, why it's important, and look at some examples to make it crystal clear.
What is a Condo Association Estoppel Letter Sample?
Think of a Condo Association Estoppel Letter Sample as a snapshot of a condo owner's financial obligations to their homeowners association (HOA). When someone wants to buy a condo, the lender or the buyer themselves will often request this letter. It's crucial because it verifies if the current owner has paid all their dues, fees, and any special assessments on time. This helps prevent unexpected costs from popping up after the sale.
The importance of this letter cannot be overstated. It protects both the buyer and the lender from inheriting any unpaid debts or liens against the property that belong to the condo association. Without it, a buyer could unknowingly take on thousands of dollars in past-due fees.
Here’s what you’ll typically find in an estoppel letter:
- The name of the unit owner.
- The unit number.
- The total amount of regular dues owed.
- Any outstanding special assessments.
- A list of any late fees or penalties.
- Confirmation that the association has no other claims against the unit.
- The date the letter was issued and its expiration date.
Estoppel Letter Sample for a Standard Sale
[Condo Association Name]
[Association Address]
[City, State, Zip Code]
[Date]
To Whom It May Concern,
This letter is to confirm the financial status of the unit located at [Unit Number], [Condo Building Address]. This information is provided at the request of [Buyer's Name or Lender's Name] and is valid as of the date of this letter.
As of [Date], the current owner, [Current Owner's Name], has a clear and outstanding balance with the [Condo Association Name]. All regular monthly assessments, special assessments, and any applicable fees are current and paid in full through [Month, Year].
The total amount due for regular monthly assessments is $[Amount] per month.
There are no outstanding liens or special assessments against this unit that are not reflected in the above statement. The [Condo Association Name] has no other financial claims against the unit or its current owner as of this date.
This estoppel letter is effective for [Number] days from the date issued.
Sincerely,
[Name of HOA Representative]
[Title of HOA Representative]
[Contact Phone Number]
[Contact Email Address]
Estoppel Letter Sample When There Are Past Due Assessments
[Condo Association Name]
[Association Address]
[City, State, Zip Code]
[Date]
To Whom It May Concern,
This letter is to confirm the financial status of the unit located at [Unit Number], [Condo Building Address]. This information is provided at the request of [Buyer's Name or Lender's Name] and is valid as of the date of this letter.
As of [Date], the current owner, [Current Owner's Name], has outstanding balances with the [Condo Association Name]. The total amount currently due is $[Total Amount Owed]. This amount includes:
- Regular monthly assessments for [List Months/Years]: $[Amount]
- Late fees and penalties: $[Amount]
- Any outstanding special assessments: $[Amount]
Please note that this outstanding balance does not include any potential additional fees or assessments that may accrue between the date of this letter and the closing date of the sale. The [Condo Association Name] reserves the right to collect all amounts due.
This estoppel letter is effective for [Number] days from the date issued.
Sincerely,
[Name of HOA Representative]
[Title of HOA Representative]
[Contact Phone Number]
[Contact Email Address]
Estoppel Letter Sample with an Upcoming Special Assessment
[Condo Association Name]
[Association Address]
[City, State, Zip Code]
[Date]
To Whom It May Concern,
This letter is to confirm the financial status of the unit located at [Unit Number], [Condo Building Address]. This information is provided at the request of [Buyer's Name or Lender's Name] and is valid as of the date of this letter.
As of [Date], the current owner, [Current Owner's Name], has a clear and outstanding balance with the [Condo Association Name]. All regular monthly assessments are paid in full through [Month, Year].
However, please be advised that the [Condo Association Name] has approved a special assessment for [Reason for Assessment, e.g., roof repairs]. This assessment will be [Amount] per unit and is scheduled to begin [Start Date of Assessment]. The current owner is responsible for any payments due prior to the closing date. Any payments due after the closing date will be the responsibility of the new owner.
The [Condo Association Name] has no other financial claims against the unit or its current owner as of this date, aside from the upcoming special assessment detailed above.
This estoppel letter is effective for [Number] days from the date issued.
Sincerely,
[Name of HOA Representative]
[Title of HOA Representative]
[Contact Phone Number]
[Contact Email Address]
Estoppel Letter Sample Request Form (Sample Language)
Subject: Estoppel Letter Request - Unit [Unit Number] - [Property Address]
Dear [Condo Association Name] Management Team,
I am writing to formally request an Estoppel Letter for the property located at Unit [Unit Number], [Condo Building Address]. This request is in relation to an upcoming sale of the property.
Please provide a letter detailing the current financial standing of the unit, including:
- Any outstanding regular assessments.
- Any outstanding special assessments.
- Any late fees, penalties, or other charges.
- Confirmation of any upcoming assessments or changes to dues that will affect the new owner.
The requested closing date for this transaction is [Date]. Please send the estoppel letter to the following recipient:
[Recipient Name]
[Recipient Title]
[Recipient Address]
[Recipient Email Address]
Please let me know if there is a fee for this service and the expected turnaround time. Thank you for your prompt attention to this matter.
Sincerely,
[Your Name]
[Your Relationship to the Property, e.g., Seller, Seller's Agent]
Estoppel Letter Sample to Correct an Error
[Condo Association Name]
[Association Address]
[City, State, Zip Code]
[Date]
To Whom It May Concern,
This letter serves as a correction to the previously issued Estoppel Letter dated [Date of Original Letter] for the unit located at [Unit Number], [Condo Building Address].
Upon review, it has been determined that there was an error in the original statement. Specifically, [Describe the error, e.g., a payment was incorrectly recorded as outstanding, or a fee was incorrectly calculated].
The corrected financial status of the unit, as of [Date], is as follows: The current owner, [Current Owner's Name], has a clear and outstanding balance with the [Condo Association Name]. All regular monthly assessments, special assessments, and any applicable fees are current and paid in full through [Month, Year].
The [Condo Association Name] has no outstanding financial claims against the unit or its current owner as of this date.
We apologize for any inconvenience this correction may cause.
This corrected estoppel letter is effective for [Number] days from the date issued.
Sincerely,
[Name of HOA Representative]
[Title of HOA Representative]
[Contact Phone Number]
[Contact Email Address]
Estoppel Letter Sample for a Foreclosure Sale
[Condo Association Name]
[Association Address]
[City, State, Zip Code]
[Date]
To Whom It May Concern,
This letter is to confirm the financial status of the unit located at [Unit Number], [Condo Building Address]. This information is provided at the request of [Foreclosure Company or Trustee Name] and is valid as of the date of this letter.
As of [Date], the unit is subject to outstanding delinquencies and associated fees with the [Condo Association Name]. The total amount currently owed is $[Total Amount Owed]. This amount includes:
| Regular monthly assessments: | $[Amount] |
| Late fees and penalties: | $[Amount] |
| Legal fees (if applicable): | $[Amount] |
| Any outstanding special assessments: | $[Amount] |
Please be advised that the [Condo Association Name] may place a lien on the property to secure these outstanding amounts. The Association intends to pursue all legal remedies available to collect these debts.
This information is provided for due diligence purposes related to the foreclosure proceedings. The [Condo Association Name] reserves the right to amend this statement should additional charges or payments be made or incurred.
This estoppel letter is effective for [Number] days from the date issued.
Sincerely,
[Name of HOA Representative]
[Title of HOA Representative]
[Contact Phone Number]
[Contact Email Address]
Estoppel Letter Sample When the Unit is Rented
[Condo Association Name]
[Association Address]
[City, State, Zip Code]
[Date]
To Whom It May Concern,
This letter is to confirm the financial status of the unit located at [Unit Number], [Condo Building Address]. This information is provided at the request of [Buyer's Name or Lender's Name] and is valid as of the date of this letter.
As of [Date], the current owner, [Current Owner's Name], has a clear and outstanding balance with the [Condo Association Name]. All regular monthly assessments, special assessments, and any applicable fees are current and paid in full through [Month, Year].
Please note that this unit is currently occupied by a tenant. The terms of the lease agreement are the responsibility of the owner and tenant. The [Condo Association Name] has no direct financial obligation or agreement with the tenant.
The [Condo Association Name] has no other financial claims against the unit or its current owner as of this date.
This estoppel letter is effective for [Number] days from the date issued.
Sincerely,
[Name of HOA Representative]
[Title of HOA Representative]
[Contact Phone Number]
[Contact Email Address]
So, as you can see, an estoppel letter is a super important document when dealing with condos. It's like a financial report card for a condo unit, making sure everyone is on the same page about what's owed. By understanding what's in it and seeing these examples, you'll be much better prepared for your condo transactions. Remember, it's always a good idea to have a real estate professional guide you through this process!