A thatch certificate is a legally binding document in which a tenant insures or promises certain things in connection with their lease. The topics usually listed in a thatch certificate relate to the tenant`s relationship with the landlord and the condition at the time of the certificate in relation to certain conditions of the lease. Common topics covered in a stubble certificate include: On a more fundamental basis, Black`s Law Dictionary defines „certificate of estoppel as „[a] statement signed by a party, such as a lessee or mortgagee, confirming in favour of another party that a particular finding of fact is correct at the time of the declaration, such as that there is a lease, that there is no default and that the rent is up to a is paid on a specific date. The submission of the declaration by the tenant prevents the tenant from later asserting a different fact. (Black`s Law Dict. (6th edition 1990) p. 551, col. 2) „A stubble certificate binds the signatory to the statements made and prevents that party from claiming otherwise at a later date.“ (Cal. Practice Guide: Real Property Transactions (The Rutter Group 1999) pp. 7.292, pp.

7-73 (rev. #1 1997).) When a landlord offers rental property for sale, the real estate agent or landlord will often require tenants in the building to complete and sign a document called an estoppel certificate. Sometimes a thatch certificate is called the Tenant Tenancy Information Return or Tenancy Information Questionnaire. The Tenant agrees to issue and deliver to the Landlord any thatch certificate requested by the Landlord from time to time, within 10 days of the Landlord`s request, stating that this Lease Agreement is in full effect, the date the rent was paid, that the Landlord is not in default (or specify in detail the nature of the Landlord`s default), the date of termination of this Rental Agreement and any other matters relating to this Rental Agreement that may be requested by the Landlord. Under Plaza Freeway, statements contained in a thatch certificate, particularly with respect to terms or provisions of a complex lease that may be vague, become critical and may effectively override the parties` initial understanding of those terms. In this regard, landlords should carefully check the content of the certificates they receive from tenants to ensure that rental conditions are not altered during exercise. Both parties to the lease must therefore ensure that the information contained in the thatch certificate is accurate and complete in order to protect their rights. A tenant should carefully review their lease, addendum and any other contracts or agreements they have with the landlord before completing a thatch certificate at the landlord`s request. If a reference to these agreements is to be included in the presentation of the terms of the lease, these conditions may be added to the certificate. Most leases have a provision requiring a tenant to provide a letter or thatch certificate from the tenant upon request, but the details of what should be included in the tenant`s thatch certificate may vary. The above points are usually a good place to start. The most important thing to keep in mind when filling out the thatch certificate is that tenants should definitely ensure that the information on the document is correct, accurate and complete in order to protect their rights.

A tenant should carefully review their lease, addendum and any other agreements they have with the landlord before completing a thatch certificate. The main effect of a thatch agreement is to bind both the landlord and tenant to all the thatch declarations and clauses listed in the document. However, its content is considered true even if it is in fact incorrect and binds the two parties to an agreement different from that initially intended. As a result, errors can have significant and unforeseen legal implications. In cases where errors are made, they are usually brought to the attention of the courts because of a discrepancy between the lease and the legal forfeiture. The requirements for the implementation of tenant arrests are usually set out in the written lease. Failure to complete one if necessary may result in eviction or legal action. (2) Assures the purchaser or lender that the tenant will not make objections and claims at a later date that contradict the information contained in the thatch certificate. Now that you know the difference between these two types of thatch certificates and why they are important for your real estate transaction, how do you get one? For commercial real estate, tenant freezes often occur during the due diligence phase of an acquisition or when taking out a loan. What is a tenant stubble and how does it work? Let`s dive in and take a closer look at the tenant`s stoppage. In the Plaza Freeway case, where the exact date of termination was unknown, the thatch certificate was used to establish the main terms of the lease as understood by the tenant at the time of purchase of the property by the applicant/landlord. Notwithstanding the tenant`s thatch certificate, the trial court concluded that the actual expiry date of the original term of the lease was approximately eight months later than the date indicated in the thatch certificate.

The Court of Appeals overturned this decision, finding that the Stoppel certificate was a „written instrument“ for evidentiary purposes under California law and prevented the tenant from objecting to the termination date he had indicated in the Stoppel certificate.