If you own your home and are looking to refinance or sell, we can help your lender obtain the documentation needed to facilitate the process. Lenders require associations to provide certain information regarding your account as well as information about the community association. This document is referred to an estoppel letter/certificate and gives a view of fees or assessments that a seller may owe. Florida law requires that purchasers are jointly liable with the sellers for dues and assessments owing at closing.
The estoppel certificate also provides other important information such as the amount of assessments, when payments are due including late fees, information on any capital contributions, transfer fees or any other fees owing in addition to insurance maintained by an association.
Essentially, estoppel certificates also ensures that payments owing the association are paid prior to closing. An estoppel certificate assists lenders in showing the property has clear title which may alleviate the need for title insurance.
In addition to estoppel certificates, a PUD Certificate or Homeowners Certificate (Condo Questionnaire) is also required. This is a requirement of the lender and covers information that they require regarding the financial stability of the overall Association, total number of units, owner occupied units v. rentals, etc. Responsibility of payment for the Certification is of the Purchaser.
Generally, completed estoppel certificates must be received within 10 business days after a request is made. There may be an additional fee for expedited orders. Estoppel certificates are effective for 30 days from date of completion and delivery.
