Tenant Estoppel Certificate
(Pro-Purchaser/Pro-Lender) (IL)

Summary

This template of a tenant estoppel certificate documents and confirms the current status and key terms of a tenant's lease of Illinois commercial property in connection with financing an acquisition of the property. This template includes practical guidance, drafting notes, and an alternate clause. A tenant estoppel certificate is typically a closing delivery required by the purchaser of a leased commercial property and the purchaser's lender providing acquisition financing. If the tenant will remain at the property after closing pursuant to a commercial lease (such as an office, retail, or industrial lease), the purchaser needs to confirm the terms of such lease. Upon closing of the acquisition, the lease will be assigned to the purchaser, as the new landlord. This tenant estoppel certificate is drafted from the perspective of the purchaser that will become the landlord of the commercial property and the lender financing the acquisition. The template also contains guidance for the tenant. For related templates, see Acquisition Loan Due Diligence Checklist and Loan Agreement (Acquisition Financing) and for more discussion on requiring tenant estoppels, see Tenant Estoppel Certificates in Commercial Purchase and Sale Transactions, Mortgaged Property Covenant Clauses (Acquisition Loan Agreement, Commercial Real Estate), and Acquisition Loan Agreements — Affirmative and Negative Covenants of the Borrower. For general information regarding Illinois commercial real estate financing, see Commercial Real Estate Acquisition Loan Resource Kit (IL) and Commercial Real Estate Financing Transactions (IL). For commercial lease templates to use in Illinois, see Office Lease Agreement (Short Form) (IL) and Retail Lease Agreement (Long Form) (IL).